Karachi Milk Prices Now Higher Than in Paris, Melbourne, and Amsterdam
Milk prices in Pakistan have risen by over 20% due to a new tax, making it more expensive in Karachi than in Paris, Melbourne, and Amsterdam.
Currently, UHT milk costs 370 rupees ($1.33) per liter in Karachi supermarkets. In comparison, it costs $1.23 in Paris, $1.08 in Melbourne, and $1.29 in Amsterdam.
The price increase follows the government’s decision to impose an 18% tax on milk, which was previously tax-free. This tax, part of the new national budget, has caused a significant rise in milk prices.
Muhammad Nasir from Royal FrieslandCampina NV said that before the tax, milk prices in Pakistan were similar to those in developing countries like Vietnam and Nigeria. The new tax has led to a price increase of up to 25%.
These rising milk prices are likely to worsen inflation in Pakistan, where wages have stagnated and purchasing power is decreasing. The recent budget, which includes a historic 40% tax hike, aims to meet the International Monetary Fund’s conditions for a new bailout package.
