National Food Security & Research Minister Rana Tanveer Hussain reaffirmed the government’s commitment to addressing the challenges in the dairy sector, referring to reviewing the impact of the 18 per cent general sales tax on packaged milk.

According to a Press Information Department (PID) press release, Hussain met a delegation from the Pakistan Dairy Association (PDA) to “discuss key challenges faced by the dairy sector”.

According to the statement, the meeting focused on the need to boost investment in dairy farms and review the 18pc GST on packaged milk.

The previously tax-exempt packaged milk is now taxed at 18pc, making it more costly than in France, Australia, and Amsterdam. A Bloomberg article compares that in dollar terms, a litre of packaged milk costs $1.33 compared with $1.29 in Amsterdam, $1.23 in Paris, and $1.08 in Melbourne.

The hike in packaged milk prices in Pakistan has raised serious concerns about the nation’s already prevalent malnutrition issues. According to data presented at a meeting with Unicef representatives, malnutrition costs the country an estimated three pc of GDP.

Moreover, the indirect sales tax was projected to cause farmers a substantial loss of around Rs23 billion.

The delegation urged the government “to reconsider the GST on packaged milk, citing its adverse impact on affordability and investment in the sector”.

While the food security minister assured that they “would consult stakeholders and explore ways to support the industry, ensuring that any tax relief directly benefits both consumers and dairy farmers.”

The minister emphasised that Pakistan was among the leading milk-producing countries — with an annual production exceeding 70 million tons.

Hussain stressed that “aligning Pakistan’s dairy industry with international standards would boost investment, ensure sustainable growth, and enhance the competitiveness of local dairy producers in the global market”, the statement read.