Milk prices in Pakistan have soared by over 20% after introducing a new tax.
Based on Bloomberg data, ultra-high-temperature (UHT) milk now retails in Karachi supermarkets at 370 rupees ($1.33) per litre, surpassing prices in Paris at $1.23, Melbourne at $1.08, and Amsterdam at $1.29.
Introduced as part of the national budget, the 18% tax has significantly driven milk prices, previously exempt from taxation.
Muhammad Nasir, a Dutch dairy giant Royal FrieslandCampina NV spokesman, noted that before the tax, Pakistan’s milk prices were on par with those in developing nations like Vietnam and Nigeria.
The tax adjustment has increased retail milk prices by 25%.
This increase will likely intensify inflation in Pakistan, a country already facing stagnant wages and declining purchasing power. It is designed to fulfil conditions stipulated by the IMF for a new bailout.
