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Business Recorder
29-05-2025
- Business
- Business Recorder
Packaged milk and infant milks: Experts, stakeholders for reversing 18pc ST
ISLAMABAD: The experts and stakeholders from government, industry, and research institutions on Tuesday called for reversing 18 percent sales tax on packaged milk and infant milks in budget (2025-26). The pre-budget seminar has concluded for immediate reforms in the taxation regime affecting Pakistan's dairy industry to promote formalization, nutrition and growth. The Sustainable Development Policy Institute (SDPI) organized a focused policy dialogue titled 'Enabling Dairy Sector Transformation through Smart Taxation'. The Federal Board of Revenue (FBR) is finalizing proposals on dairy sector. Through the Finance Act 2024 the government withdrew zero-rating (Serial no.12(xvii) and 17 of the Fifth Schedule of the Sales Tax Act 1990) and imposed 18% GST on locally produced infant formula, baby food and fortified child nutrition products. Before that the locally produced preparations suitable for infants were eligible for zero-rating if the cost was within a threshold defined by the government. The FBR is reviewing this budget proposal to restore zero-rating on infant milks. The session, moderated by Zainab Naeem and organized as part of the Sustainable Development Policy Institute's (SDPI) pre-budget consultation series, aimed to finalize a joint statement and action plan to formalize the largely informal dairy sector through rational tax policies. In his opening remarks, Dr. Abid Qaiyum Suleri, Executive Director of SDPI, highlighted that despite contributing significantly to economic activity, over 90% of Pakistan's dairy sector remains undocumented and untaxed. 'Documentation of the economy is crucial not just for fiscal stability but also for tackling malnutrition and ensuring food safety,' said Dr. Suleri. He emphasized that the current tax policy – particularly the 18% GST on packaged milk – disincentivizes the formal sector and undermines both public health and economic development. Dr. Umar Farooq, Research Associate at SDPI, presented key findings from a policy brief. He revealed that the sales tax hike led to a 20% drop in packaged milk sales and closure of over 500 formal milk processing units, redirecting Rs1.3 trillion in revenue to the informal sector. 'This is a fiscal miscalculation. Globally, milk is taxed at an average of just 6%. Pakistan's 18% GST on packaged milk is a policy outlier that compromises health, nutrition, and livelihoods,' he stated. Representing the private sector, Muhammad Nasir of Friesland Campina Engro Pakistan stressed the sector's socio-economic importance, especially in rural areas. 'Dairy acts as a social safety net, yet our productivity remains among the world's lowest,' he said. Nasir also flagged Pakistan's alarming 40% stunting rate and warned that increased taxation on safe milk could worsen national nutrition indicators. Aatekah Mir from Nestlé Pakistan explained that the sales tax freeze has halted investment in milk conversion infrastructure. 'This tax was criticized across political lines,' she noted, adding that Nestlé and others are fully aligned with the SDPI's policy recommendations. Dr. Shehzad Amin, CEO of the Pakistan Dairy Association, called for a rational and uniform tax regime. 'No country taxes milk at 18% – the highest global rate is 9%. Safe milk is not a luxury, it's a right,' he asserted. He warned that shifting consumption from packaged to loose milk due to pricing pressures could severely impact public health and contribute to a stunted generation in the next five years. Dr Muhammad Anjum Iqbal, Animal Nutritionist at the Ministry of National Food Security and Research urged the government to incentivize quality milk production, highlighting the need for improving animal health, diet, and environment. During the questions and answers session, the experts emphasized the importance of pasteurization, certification, and infrastructure. Muhammad Nasir from Engro Pakistan reiterated that only registered and tested products were certified, and that modern safety protocols like those in the Netherlands were needed to combat zoonotic disease risks. Dr Shehzad Amin pointed out that 96% of milk samples from the informal sector are adulterated, compared to the formal sector's strict testing standards. 'Bringing the informal sector into the tax net could improve both revenue and milk quality,' he said. In conclusion, stakeholders unanimously called for immediate reduction of GST on packaged milk to 5%, recognition of milk as a nutrition-sensitive commodity, alignment of fiscal policies with health and nutrition goals, and promotion and protection of the formal dairy sector through public awareness and infrastructure development. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
SPDC flags concerns as tobacco sector seeks tax relief in budget
LAHORE: The tobacco industry has called on the government to introduce a third tax tier and lower Federal Excise Duty (FED) in the upcoming budget, raising alarms among economists and public health experts about the potential impact on tax compliance and health policy. As budget consultations continue, the industry has proposed a reduced FED of PKR 3,800 per 1,000 cigarette sticks—down from the current PKR 5,050—and the creation of a new tier with a lower rate of PKR 2,525 per 1,000 sticks. The demands have surfaced amid criticism of the sector's tax practices. During a roundtable discussion hosted by the Sustainable Development Policy Institute (SDPI), Asif Iqbal of the Social Policy and Development Centre (SPDC) alleged that leading tobacco firms have manipulated production data to influence taxation policy. Iqbal noted that although cigarette production increased by 19.2% during 2023–24, revenue from FED saw a decline of 2.4%, while GST collection dropped 26.1%, pointing to a worrying mismatch between declared production and tax receipts. He further stated that while nine tobacco companies are enrolled in the government's track and trace system, only three—accounting for 60% of the market—have implemented it using automated processes. This loophole, he said, allows underreporting and weakens tax monitoring efforts. Experts have warned that acquiescing to these proposals could let the tobacco sector gain additional revenues of PKR 10–20 billion, at the cost of a significantly higher health burden for the country, potentially ten times greater than the revenue benefit. Copyright Business Recorder, 2025
Express Tribune
20-05-2025
- Health
- Express Tribune
'Targeted policies key to tackling air pollution'
Lahore consistently ranks among the worst cities in the world for air pollution. AFP A recent study conducted by the Sustainable Development Policy Institute (SDPI) — Air Pollution's Deadly Impact on Health in Pakistan: A Deep Dive into PM2.5 Levels in Peshawar and Islamabad — reveals that only through targeted policies, robust data collection, and public health initiatives can Pakistan hope to reduce the burden of air pollution and safeguard the health of its citizens. A comprehensive study led by Dr Razia Safdar, the Senior Policy Advisor at the Centre for Health Policy & Innovation, has quantified the health impacts of fine particulate matter (PM2.5) on the residents of these cities. Air pollution is taking a heavy toll on public health in Pakistan, new research shows alarming health risks in the country's two major urban centres, Islamabad and Peshawar. The findings from this study, which utilised the WHO's AirQ+ tool to estimate health endpoints, highlight the stark reality of air pollution's impact on life expectancy, mortality rates, and the prevalence of non-communicable diseases (NCDs). "PM2.5, airborne particles less than 2.5 micrometres in diameter, are the most hazardous form of air pollution due to their ability to penetrate deep into the lungs and bloodstream, causing severe health issues," the report said. In Pakistan, which ranks among the top five countries with the worst air quality, cities like Peshawar and Islamabad are experiencing significant public health risks. The country's average Air Quality Index (AQI) in 2023 was 160, with PM2.5 levels 14.7 times higher than the World Health Organisation's (WHO) recommended limits. Dr Safdar's report emphasises the urgency of addressing the critical health impacts associated with prolonged exposure to such high pollution levels. According to the study, air pollution in Pakistan contributes to approximately 256,000 premature deaths annually and reduces life expectancy by nearly four years. Among the most affected are vulnerable populations, including children, the elderly, pregnant women, and individuals with pre-existing conditions like asthma and ischemic heart disease. The research specifically focused on two of Pakistan's urban powerhouses Islamabad, the capital, and Peshawar, the provincial capital of Khyber Pakhtunkhwa.
Business Recorder
20-05-2025
- Business
- Business Recorder
Dr Ishrat Hussain joins SDPI as Senior Advisor
ISLAMABAD: Dr Ishrat Hussain, the eminent economist, former governor of the State Bank of Pakistan and former advisor to the prime minister on Institutional Reforms and Austerity, has joined the Sustainable Development Policy Institute (SDPI) as Senior Advisor to strengthen the Institute's policy landscape. With a distinguished career spanning over five decades, Dr Hussain's association with SDPI marks a significant leap in the think tank's mission to influence evidence-based policy and institutional reform in Pakistan, said a press release issued on Monday. His unparalleled experience in governance, public sector restructuring and economic management is expected to elevate SDPI's strategic vision and deepen its impact on national policy discourse. Welcoming Dr Hussain to the Institute, Executive Director of SDPI, Dr Abid Qaiyum Suleri, stated: 'Dr Ishrat Hussain's joining is not just an honour but a defining moment for SDPI. His legacy in public sector reform, financial governance and development economics has transformed institutions and policymaking in Pakistan. We are confident that his counsel will immensely enhance our ability to navigate complex policy challenges and deliver actionable solutions for sustainable development.' Previously, Dr Hussain served as Dean of Institute of Business Administration, Karachi. Besides, he also led the country's most ambitious civil service reform agenda. His tenure as advisor to the prime minister on institutional reforms saw the design and implementation of critical governance and institutional frameworks aimed at enhancing efficiency, transparency, and citizen service delivery. Dr Hussain's presence at SDPI will further solidify the institute's position as a premier think tank in South Asia, while also reinforcing the bridge between academic rigour and practical policymaking at the national and regional level.
Business Recorder
15-05-2025
- Politics
- Business Recorder
Women lawmakers, civil society demand end to symbolic representation in politics
PESHAWAR: Women parliamentarians, civil society actors, and policy experts gathered at a high-level roundtable titled 'Raising Her Voice in Politics', jointly hosted by the Sustainable Development Policy Institute (SDPI) and the Women's Parliamentary Caucus (WPC) comprising parliamentarians from National Assembly and Senate of Pakistan PPP, PML-N, PTI, JUI, and MQM-P to spotlight Pakistan's persistent gaps in women's political representation and to push for immediate party and legislative reforms. In her welcome remarks from Chairperson, Women Parliamentarians Caucus, MNA Shahida Rehmani, who lauded SDPI for organizing the forum. 'It's a shared goal to not only include women in political parties but empower them to shape their own futures,' she said. Dr Rehmani further stated, 'Despite the 5% quota requirement under the Elections Act 2017, compliance remains weak, these figures reflect not just underrepresentation but active gate keeping within party structures.' Dr Rehmani also emphasized that women face systemic challenges within political parties and called for urgent solutions to ensure gender parity. She underscored the need for a binding 33% representation in all new political formations and highlighted gender policy equality as the critical path forward. As per the SDPI research, Pakistan's demographic reality further underscores the urgency of reform. Women make up 49% of the country's population, with 59 million registered female voters as of 2024. However, only 42% of women cast their votes in the last general election a 5% decline from 2018. Despite this numerical strength, women's influence in political decision-making remains minimal. An SDPI analysis of the constitutions of 19 political parties represented in Parliament found that only five parties complied with the 5% women's general seat nomination requirement. Notably, the Balochistan National Party and Awami National Party included 9 and 10 women, respectively, in their Central Executive Committees; highlighting a few examples of positive practice, though far from the norm. To better understand the legal framework, SDPI reviewed the Political Parties Order (PPO) 2002 and the Elections Act 2017. While the 2013 amendment to PPO 2002 enabled the introduction of a 5% nomination quota for women on general seats, another provision; calling for 33% representation of women political workers in all elected and non-elected bodies of political parties, was sidelined during legislative discussions and remains unimplemented. In light of these findings, Qasim Shah, Deputy Executive Director SDPI, stated ' A set of recommendations for urgent legislative and institutional reform. First, Section 208 of the Elections Act 2017 should be amended to require political parties to ensure at least 33% representation of women as office bearers in both elected and non-elected bodies — proportionate to the female population. Second, Section 202 of the same Act, which mandates a minimum of 2,000 members for party registration, should be revised to include a mandatory requirement of 33% female membership, ensuring gender-inclusive party formation from the outset.' Parliamentarians and Senators present at the roundtable welcomed these recommendations and voiced their support for institutional reform, gender audits, and accountability within political parties. They emphasized the need for a shift away from tokenism toward meaningful inclusion. In his vote of thanks, Dr. Abid Qayyum Suleri, Executive Director, SDPI, said, 'It's not enough to offer symbolic seats or fulfill quotas on paper. For democracy to be inclusive, women must be empowered to lead from the front. Marginalization of women is a global issue. Even the United Nations has yet to elect a woman Secretary General,' he said, citing the 'One for Eight Billion' campaign. Dr. Suleri urged an amendment to the Election Commission Act 2019 to enforce women's inclusion in political processes. In her closing remarks, MNA Tahira Aurangzeb of PML-N praised SDPI's efforts and reaffirmed the Caucus's commitment to progressive reforms. 'Women should comprise 50% of all political parties,' she said. 'They not only bring inclusivity but also utilize development funds more effectively. Punjab's progress under female leadership is testament to that.' Copyright Business Recorder, 2025
