(Web Desk) — Due to the introduction of an 18% General Sales Tax (GST) in the budget, Pakistani consumers will face a significant hike in packaged milk prices starting July 1, 2024.
Prices are set to increase by up to Rs75 per liter, impacting the formal dairy sector severely. Industry experts warn that this tax could potentially shrink the sector by more than 70% if not reconsidered.
FrieslandCampina Engro Pakistan Limited, known for its Olper’s brand, has already adjusted its pricing strategy. Retail prices for 250ml packs now stand at Rs95, while cartons of Ecolean products are priced at Rs2,660 and TBA products at Rs2,565. Similarly, 100ml packs are now Rs370 each, with cartons priced at Rs4,440. The larger 1500ml packs are priced at Rs535 each, with cartons costing Rs4,200.
Despite Pakistan being among the top milk producers globally, the country faces significant malnutrition challenges. Reports indicate that 40% of children suffer from stunted growth, 29% are underweight, and 18% are malnourished. Currently, the majority of Pakistan’s population, over 90%, consumes fresh, unpasteurized milk, while only a minority relies on packaged milk products.
