The budget for 2024–2025 was adopted by the Pakistani National Assembly in June 2024, and it included an 18% general sales tax (GST) on packaged milk. With effect from July 1, this new tax policy has significantly raised the cost of packaged milk, making it less affordable for the average person. Milk is no longer as affordable, which raises serious issues for public health.
Prominent dairy companies in Pakistan have already modified their rates in response to the new GST. The price of a 1,000ml pack has increased to Rs330–370, while the once inexpensive 250ml pack now costs Rs85–95. Once a typical household size, the 1,500ml pack now costs an astounding Rs535.
For families who are used to purchasing in bulk, carton milk prices have increased significantly. These increases, which are the result of the new GST, show the growing divide between the price of milk and the requirement for it to be safe and nourishing.
A meal rich in practically all the key nutrients needed by individuals of all ages is milk. However, especially during the hot summer months, an uncontrolled and poorly managed supply chain provides an ideal environment for the growth of microbial infections, pesticide residues, antimicrobial medication residues, aflatoxins, heavy metals, adulterants, and other dangerous materials.
Only the microbial load can be reduced by boiling milk; other toxic chemicals remain. Such milk consumption can result in infections, gastrointestinal disorders, and diseases brought on by dangerous adulterants.
A study conducted by the University of Veterinary and Animal Sciences (UVAS) found that 54% of Pakistan’s loose milk does not fulfill safety requirements and 92% does not comply with regulatory guidelines. This change presents a serious risk to public health in a nation where 95% of milk consumed is already loose and frequently tainted.
This percentage will rise as a result of the new tax, worsening the situation. The consequences of this approach are severe, burdening the healthcare system and putting future generations in danger. The nation’s vulnerable population and children’s health are at risk as the regulated milk industry suffers under the burden of increased taxes.
A staple of child nutrition, milk is disappearing from the tables of those who are most in need of it. According to a Unicef report on national nutrition in Pakistan, eight out of ten Pakistani children lack access to a wholesome diet, and approximately 10 million suffer from stunting.
In 2018, a poll revealed that 28.9 percent of youngsters were underweight, 17.7 percent were wasting, and 50 percent had anemia. In addition, there is a concerning issue with hidden hunger in the nation. A silent killer, malnutrition is a factor in 35% of fatalities in children under five.
These figures provide a terrifying picture. 2.14 million children were identified as malnourished in July 2023 by the Integrated Food Security Phase Classification (IPC) analysis. Of these, 1.5 million had moderate acute malnutrition and 0.6 million had severe acute malnutrition. The fact that Pakistan has acute malnutrition rates twice as high as South Asia and four times higher than the world average highlights the situation even more.
The tale of milk in Pakistan juxtaposes the wealthy and the impoverished, the well and the ill, and the secure and the perilous. An 18% GST on packaged milk might make a daily need into an unaffordable luxury for a large number of people. It is a call to action for decision-makers to think through the wider effects of these taxes and work toward solutions that support the health and welfare of all Pakistanis.
The government has to acknowledge the vital role that inexpensive, safe milk plays in maintaining public health. Making the milk supply chain “traceable” is also necessary because it will raise accountability for each link in the chain. Ensuring that healthy milk remains a viable option for families throughout Pakistan should be the goal of policies.
The ability of the nation to safeguard its most defenseless citizens will be the real test of its performance as it navigates this difficulty. A country’s strength is ultimately determined by the well-being and contentment of its citizens, not by its fiscal policies. Providing everyone with access to healthy, safe milk is not only a matter of economic need, but also morally required.