Boxed milk prices likely to increase from June 12 in Pakistan

KARACHI: The price of Ultra-high temperature (UHT) milk, commonly referred to as Tetra Pak milk has risen significantly in Pakistan effective from June 23 ahead of the upcoming federal budget 2024-25.

The new price of packaged milk in Pakistan will be Rs 420 with an increase of Rs 40 on a 1.5 liter milk pack. The new prices will be effective from June 12.

Following the announcement, the new price for a 1.5-litre carton of packaged milk prices will be Rs3,360. Meanwhile, some companies have already increased prices from June 1.

In a separate development, the dairy farmers association has demanded an Rs50 per litre hike in the price of milk. 

As the federal government is all set to unveil the financial year budget 2024-25, Pakistan’s middle class should not expect much relief from the budget which is being prepared on IMF strict conditions. The new proposed federal budget of Rs18,900 billion will be based on a deficit of Rs9800 billion.

According to the details, the upcoming budget plans to impose 18% GST on hundreds of items, including imported food, milk, tea, sugar, rice, flour, packed milk, and stationery as the international lender has asked Islamabad further to reduce the sales tax exemptions for fresh loans.

There is also a plan to increase the tax on old vehicles and include many sectors including lakhs of retailers in the tax net.