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Express Tribune
26-07-2025
- Climate
- Express Tribune
Increased cloudbursts lead to call for action
Local people catch fish in the floodwaters near a partially submerged house during heavy monsoon rains at the Ladian village of Rawalpindi on July 17, 2025. Photo: AFP Environmental expert Zainab Naeem has said that the recent wave of heavy rains and cloudbursts across Pakistan reflects the growing impact of climate change, compounded by urban planning challenges and environmental degradation. Talking to a private news channel, she said that although the government is increasingly recognizing these issues and taking steps in the right direction, there is still more room for collective efforts. She emphasised that while monsoon rains are part of the region's climate pattern, the current intensity and frequency of cloudbursts are not routine.


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