Latest news with #PakistanDairyAssociation
Business Recorder
4 days ago
- Health
- Business Recorder
‘Access to safe milk should be considered right not a privilege'
LAHORE: Ramesh Singh Arora, Minister for Minorities & Human Rights, Punjab, has emphasized that access to safe milk should be considered a right, not a privilege. 'Every citizen deserves access to clean, safe, and nutritious milk. Unfortunately, loose milk often contains harmful adulterants like urea, posing serious health risks. Packaged milk, on the other hand, maintains strict quality standards and offers a reliable alternative. The government of Punjab is acutely aware of the province's malnutrition challenges and is committed to ensuring safe milk reaches every household. We also recognize the negative impact of the current taxation on packaged milk and are working to address this as part of our broader health and nutrition agenda.' Romina Khurshid Alam, Minister of State & Special Assistant to the Prime Minister, emphasized the essential role of milk in ensuring nutritional well-being. 'When we talk about health and nutrition, milk stands out as the one element that completes the nutrition cycle. In the fight against malnutrition, a single glass of milk can make a significant difference - it's one of the healthiest, most complete foods we can provide.' They were speaking at recently convened a national seminar in Lahore to commemorate World Milk Day under the theme 'Safe Milk, Safe Nation: Affordable Dairy for a Healthier Nation.' The Pakistan Dairy Association (PDA) hosted the event which brought together senior government officials, industry leaders, and dairy experts to advocate for a national shift toward safer, regulated milk and to explore the strategic role of the formal dairy sector in enhancing public health, food security, and sustainable economic development. 'According to WFP, stunting is costing Pakistan an estimated $6 billion annually. We must learn from global success stories. For example, China launched a school milk program in 2000 and saw measurable improvements in child growth 0.72cm in 7-year-olds and 0.46cm in 9-year-olds. They have successfully tackled malnutrition and micronutrient deficiencies through such initiatives. As Chairman of the PDA, I believe it's time we ask ourselves: what do we need to do differently to achieve the same for our children?' said Usman Zaheer, Chairman – Pakistan Dairy Association and CEO Fauji Foods Ltd. He also expressed his gratitude to key government stakeholders for their ongoing support and emphasized the urgent need to address the country's nutrition crisis through strategic interventions like school milk programs. Dr Shehzad Amin, Chief Executive Officer of Pakistan Dairy Association, opened the seminar by highlighting the central role of dairy in public health and national development. He said, 'World Milk Day is not just a celebration — it is a global moment to acknowledge nature's most complete superfood and its profound impact on nutrition, food security, livelihoods, and economic growth. Initiated by the Food and Agriculture Organization of the United Nations, this day honours the tireless efforts of millions of dairy farmers while spotlighting the sustainable development opportunities the dairy sector offers. At PDA, our mission is firmly rooted in ensuring that safe, nutritious, and affordable dairy is accessible to every citizen. We believe and advocate that safe milk is not a choice, but a fundamental right of every Pakistani.' Adding to this perspective, Noor Aftab, Director Corporate Affairs – Pakistan & MENA at Tetra Pak, highlighted the importance of innovation in dairy processing and packaging. 'Milk is more than daily nutrition — it's a cornerstone of public health, food resilience, and economic progress. Through advanced technologies and collaborative efforts, we are committed to making safe, affordable dairy accessible to every household in Pakistan,' he noted. The seminar featured in-depth discussions on regulatory reforms, standardization, certification, and enforcement mechanisms necessary to ensure the safety of milk. Key officials, Jahan Ara Wattoo, Vice Chairperson, Punjab Social Protection Authority, Dr Talat Naseer Pasha – DG PAFDA, Amina Rafique, ADG Technical, Punjab Food Authority, and Saqib Ali Ateel, Secretary for Livestock & Dairy Development, shared institutional strategies for quality assurance and public awareness. The role of the private sector in driving innovation and ensuring a consistent supply of safe milk was also a central theme. Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
PDA team meets Ahsan Iqbal
ISLAMABAD: A high-level delegation of the Pakistan Dairy Association (PDA) met with the Federal Minister for Planning, Development & Special Initiatives, Professor Ahsan Iqbal, to discuss the current challenges specifically after the imposition of 18 percent sales tax on packaged milk facing the dairy industry and the need for sustainable reforms to unlock its full potential. The delegation included Kashan Hasan, Managing Director FrieslandCampina Engro Pakistan and Vice Chairman of PDA; Dr Shehzad Amin, CEO PDA; Dr Muhammad Nasir from FCEPL; Aatekah Mir from Nestlé Pakistan and Noor Aftab from Tetra Pak. During the meeting, the PDA presented it's position on the impact of the unprecedented 18% sales tax on packaged milk, and its ripple effects on farmers, consumers, and the formal dairy value chain. In response, Minister Ahsan Iqbal expressed his full support for the Association's position, acknowledging the adverse effects of the current taxation regime. He affirmed the importance of dairy as a key pillar of food security, economic growth, and export potential, and endorsed the need for a long-term dairy policy to ensure sectoral resilience, consumer health, and farmer sustainability. Copyright Business Recorder, 2025
Express Tribune
19-03-2025
- Business
- Express Tribune
Dairy industry takes up 18% GST issue
Listen to article Special Assistant to Prime Minister for Industries and Production Haroon Akhtar Khan on Wednesday met a delegation of the Pakistan Dairy Association (PDA) to discuss the challenges being faced by the dairy sector and explore potential solutions. The PM aide highlighted that Pakistan was among the world's largest milk-producing countries with annual production of over 70 million tons, said a statement. However, he emphasised the need for further development of dairy farming and milk processing industries to improve quality standards and reduce production costs. One of the key topics of discussion was the impact of 18% general sales tax (GST) on packaged milk. The special assistant said the tax had caused an increase in milk prices, affecting both producers and consumers. PDA members urged the government to reconsider the taxation policy for packaged milk and advocated a reduction in the GST rate to ensure a steady supply of milk at affordable prices to consumers while propping up the dairy industry. Haroon Akhtar Khan stressed that without increased investment in the dairy sector, the achievement of self-sufficiency in food production would not be possible. He assured the delegation that the government was committed to addressing the challenges affecting the industry and would continue engaging with the relevant stakeholders to find effective solutions.
Express Tribune
20-02-2025
- Business
- Express Tribune
18% sales tax threatens dairy sector
Listen to article The government on Thursday assured a review of the imposition of an 18% sales tax on packaged milk, as it turned out that Pakistan has the highest tax on branded milk in the world and two-thirds of consumers earn less than Rs50,000 a month. The assurance to review the high tax rate was given by Minister for Finance Muhammad Aurangzeb during a meeting with the Pakistan Dairy Associationthe representative body of the packaged milk industry. The PDA requested a reduction of the sales tax rate to 5%, aiming to bring it in line with most countries. The association also shared the findings of various independent surveys with the finance minister, which dispelled the myth that the sales tax on dairy products was in line with international standards and that only wealthy people consume packaged milk in Pakistan. The government had imposed an 18% sales tax on packaged milk, tea whitener, and powdered milk in the budget to raise Rs50 billion in additional taxes. However, this has started crippling the industry, which has seen a double-digit reduction in sales. Due to Prime Minister Shehbaz Sharif's decision to impose the 18% GST, the price of packaged milk increased by Rs70 per kg or 28% to Rs350 per litre. The industry on Thursday urged the finance minister to review the decision and reduce the sales tax on packaged and powdered milk from the current 18% to 5%, industry representatives said after the meeting. In a country where 40% of children under the age of five are stunted and 54% of girls and women are anaemic, the government's imposition of an 18% sales tax on packaged milk is seen as detrimental. Pakistan also ranks 109th on the Global Hunger Index. The industry cited a survey in its representation to the finance minister, which showed that 64% of packaged milk consumers earn under Rs50,000 per month. Rs50,000 per month is the income level exempted from income tax. Finance Minister Muhammad Aurangzeb had stated in his post-budget press conference that only wealthy people drink packaged milk. However, the most nutritious item has now become the most expensive in the country's food basket. The Pakistan Dairy Association further stated that the 18% sales tax on milk in Pakistan is an anomaly worldwide. It stated that no other country has such a high tax on milk, not even developed nations. According to its representation, there is no tax on milk in the United States, Canada, Australia, Bangladesh, and the United Arab Emirates. It further stated that there is no tax on milk in India, while it is 8% in Sri Lanka, 9% in the United Kingdom, and 7% in Germany. However, in these countries, there is sales tax on other food products. The finance minister acknowledged the industry's hardships during the meeting and said that the government would review the taxation and explore the possibility of revising the tax rates, according to meeting participants. The industry stated that since the imposition of the tax in July last year, sales volumes have declined by 20%, with a further decline of roughly 14% expected in the second half of the current fiscal year. The industry stated that the expected Rs50 billion in earnings from packaged milk would not materialise due to declining sales. Moreover, the formal sector lost 20% of its milk supply to the unregulated loose milk market. Following the sales decline, the industry closed about 500 milk collection centres. The closures impacted 35% of formal farmers, who are now forced to move to the loose milk trade, incurring losses of Rs10 to Rs15 per litre. After the tax imposition, milkmen also increased the prices of loose milk by Rs30 to Rs40 per litre, according to the PDA. The informal sector gained Rs1.3 trillion annually due to the government's decision to impose the 18% sales tax, it further stated. The real tax impact is about 25% due to the informality in the sector. The government also charges a 4% further tax and a 2.5% withholding tax from unregistered wholesale distributors and dealers. A collaborative study by renowned academic and research institutions assessed the safety and quality of loose milk samples collected from milk shops across Pakistan. The study found that 45% of loose milk is unsafe to drink, the finance minister was informed. Only 8% of the total milk is sold in packaged form in Pakistan, compared to 45% in India. There is also a reduction in capacity utilisation, with processors operating at less than 50% capacity, and a few below 30%, leading to divestment and 20% job losses. The government was informed that smaller players are already on the brink of closure and that taxation may soon start impacting major players. Companies are also cutting back on advertising their brands, using the savings to offset some of the losses.
