The cost of milk in Karachi has skyrocketed by over 20% following the implementation of a new tax, according to Bloomberg. This dramatic price increase has sparked concerns about affordability and potential health consequences.
Previously exempt from taxation, packaged milk in Pakistan was subject to an 18% levy in the country’s recent budget. This change has resulted in a significant price jump, with UHT milk now costing a staggering Rs.370 ($1.33) per liter in Karachi.
This price point exceeds the cost of milk in major international cities like Paris ($1.23), Melbourne, and Amsterdam. For many Karachi residents, particularly those living in poverty, this price increase presents a stark challenge.
With nearly 40% of Pakistan’s population already grappling with poverty, the surge in milk prices may worsen child malnutrition rates. Milk is a vital source of essential nutrients for children, and reduced access could have detrimental health consequences.
Also read: Pakistan’s Weekly Inflation Declines By 0.25%: Reports PBS
The tax on milk is part of a larger effort by the Pakistani government to meet the terms of a bailout agreement with the International Monetary Fund (IMF). However, the unintended consequences of this policy highlight the delicate balance between fiscal responsibility and the well-being of citizens.
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