Milk in Pakistan now more expensive than in France and Australia

KARACHI: Milk prices in Pakistan have surged by more than 20 per cent following the introduction of a new tax, exacerbating the financial burden on consumers already grappling with high costs for essential goods.

The increase has significant implications for daily consumers, particularly those who rely on milk for their tea, coffee, and other daily needs.

The latest tax has surprisingly driven the price of milk in Pakistan higher than in several developed nations, including France and Australia, according to a report by Bloomberg.

Ultra-high temperature (UHT) milk now costs Rs370 ($1.33) per litre in Karachi supermarkets, surpassing the prices of $1.29 in Amsterdam, $1.23 in Paris, and $1.08 in Melbourne.

This price hike follows the implementation of an 18 per cent tax on packaged milk, which was previously exempt, as part of the recent national budget. The tax increase is part of broader fiscal measures aimed at meeting the International Monetary Fund’s conditions for a new bailout. This budget also saw taxes rise by 40 per cent, marking the highest increase on record.

Before this tax imposition, milk prices in Pakistan were on par with those in developing countries such as Vietnam and Nigeria.

However, the new tax has led to a retail price increase of up to 25 per cent, contributing to the country’s rising inflation. This price surge comes at a time when wages have stagnated, further diminishing the purchasing power of the population.

According to Mettis Global, the escalating cost of milk is also expected to have severe repercussions for child health in Pakistan. With around 40 per cent of the population living in poverty, the higher milk prices threaten to exacerbate malnutrition.

Currently, about 60 per cent of Pakistani children under five suffer from anaemia, and 40 per cent suffer from stunting. Experts warn that the increased milk prices will deny essential nutrition to a population already facing significant health challenges.

As the days unfold, the impact of these price hikes on the population’s health and economic stability will become clearer, raising concerns about the country’s ability to cope with such financial pressures.

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