Karachi’s Milk Price is Now Higher Than Paris, Melbourne and Amsterdam

Milk prices in Pakistan have increased by over 20% due to a new tax, making it more expensive in Karachi than in cities like Paris, Melbourne, and Amsterdam.

According to Bloomberg data, at the moment, ultra-high temperature (UHT) milk costs 370 rupees ($1.33) per liter in Karachi supermarkets. Meanwhile, it costs $1.23 in Paris, $1.08 in Melbourne, and $1.29 in Amsterdam.

This price hike follows the government imposing an 18% tax on milk, which was previously tax-free. The new tax policy, part of the recent national budget, has significantly increased milk prices.

Muhammad Nasir, a spokesperson for the local branch of the Dutch dairy company Royal FrieslandCampina NV, stated that milk prices in Pakistan used to be on par with those in developing nations like Vietnam and Nigeria before the tax. The new tax has led to a retail price increase of up to 25%.

The rising milk prices are expected to intensify inflation in Pakistan, where wage growth has stalled and purchasing power is diminishing. The recent budget, which included a historic 40% tax increase, aims to satisfy the conditions set by the International Monetary Fund for a new bailout package.