Milk prices in Pakistan have surged by over 20% following the implementation of a new tax, making this essential dairy product more expensive than in France, Australia, and several other developed countries.
Ultra-high temperature (UHT) milk now costs 370 rupees ($1.33) per liter in Karachi supermarkets. In comparison, the price is $1.29 in Amsterdam, $1.23 in Paris, and $1.08 in Melbourne, according to Bloomberg data.
The 18% tax on packaged milk, which was previously exempt, was introduced as part of the recent national budget. This new tax has driven up prices for this staple by about 25%, shocking consumers across the nation.
Before this tax, milk prices in Pakistan were comparable to those in developing countries like Vietnam and Nigeria, according to Muhammad Nasir, spokesperson for the local unit of a Dutch dairy producer.
This surge in milk prices is just one aspect of the broader inflationary pressures squeezing the wallets of many in the cash-strapped nation.
