The milk prices increased by more than a fifth in Pakistan after the government introduced a new tax which made the dairy staple costlier than it is in Australia, France and other developed countries.
In the supermarkets of Karachi, Ultra-high temperature or UHT milk is being sold for Rs370 ($1.33) per litre.
As per the data collected by Bloomberg, the milk costs $1.29 in Amsterdam, $1.23 in Paris, and $1.08 in Melbourne.
In the taxation changes introduced by the government last week as part of the national budget, the milk tax was introduced which is 18 per cent on packaged milk.
Earlier, it was exempted from any tax. Before the tax was imposed, which resulted in an increase in retail prices by 25 per cent, the cost of milk was similar to the prices in other countries in Nigeria and Vietnam, said Muhammad Nasir, who is a spokesman for the local unit of Dutch dairy producer Royal FrieslandCampina NV.
The costlier price of milk will only increase the inflation that the South Asian country is battling amid a deepening economic crisis that has led to stagnation in wages and erosion of spending power.
Child health is also likely to decline because of the increase in milk prices as 40 per cent of the country has been living in poverty.
“It will deny nutrition from a population that is already suffering from malnutrition,” said Nasir, in a text message.
Nearly 60 per cent of Pakistani children, who are under 5 years of age, are anaemic and nearly 40 per cent of them are suffering from stunted growth.
Pakistanis express displeasure of surge in milk price on social media
Taking to social media platforms, the Pakistanis expressed displeasure over the price hike of milk.
“Bone-breaking inflation is on its peak! Milk prices in Pakistan have surged by more than 20% following the imposition of a new tax, making the dairy staple more expensive in Karachi than in Paris, Melbourne, and Amsterdam,” one of the users wrote on X.
Bone breaking inflation is on its peak!
Milk prices in Pakistan have surged by more than 20% following the imposition of a new tax, making the dairy staple more expensive in Karachi than in Paris, Melbourne, and Amsterdam. pic.twitter.com/EApfF1iB7C
— Qazi Asif (@QMAAsif) July 4, 2024
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“Milk prices in Pakistan surged by more than a fifth after a new tax was applied, making the dairy staple more expensive than in France, Australia and some other developed nations. Great going,” said another user.
Watch: 7 killed, 18 injured in bus accident in Pakistan’s Karachi
The taxes were raised by the Pakistan government by 40 per cent, which was the highest on record. The increase was part of the national budget introduced last week which was aimed at meeting conditions proposed by the International Monetary Fund for getting a new bailout.
(With inputs from agencies)
Prisha
Prisha is a digital journalist at WION and she majorly covers international politics. She loves to dive into features and explore different cultures and histories
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Publish date : 2024-07-04 10:27:13
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