ISLAMABAD: Minister for National Food Security and Research (MNFS&R) Rana Tanveer Hussain assured the Pakistan Dairy Association (PDA) on Thursday that the government would review the 18 percent General Sales Tax (GST) on packaged milk, which has been increasing costs and creating financial difficulties for processors and farmers.
The minister, during a meeting with the delegation of PDA, assured that the government will address the challenges in the dairy sector, particularly reviewing the impact of the 18 percent GST on packaged milk, said a senior official of the MNFSR.
He said that the meeting discussed in detail the challenges faced by the dairy sector. The meeting discussed important issues, including 18 percent GST on packaged milk and stressed the need for investment in dairy farms to boost milk production.
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According to an official statement of the MNF&R minister, Pakistan is among the leading milk-producing countries, with an annual production exceeding 70 million tons. This sector needs strategic investments and policy reforms to unlock its full potential, he said.
As per the readout, Hussain urged the need to facilitate the PDA in investing in dairy farms, which would not only increase milk production but also improve the overall quality of dairy products.
The PDA delegation urged the government to reconsider the GST on packaged milk, citing its adverse impact on affordability and investment in the sector.
The minister assured that the MNFS&R would consult stakeholders and explore ways to support the industry, ensuring that any tax relief directly benefits both consumers and dairy farmers.
He emphasised that aligning Pakistan’s dairy industry with international standards would boost investment, ensure sustainable growth, and enhance the competitiveness of local dairy producers in the global market.
The minister said that without the development of the dairy sector, achieving self-sufficiency in food security would remain a challenge.
Investment in dairy farms is crucial for enhancing milk production and ensuring high-quality dairy products, he said, adding that the government will work towards policy reforms to modernise the dairy industry and stabilise milk prices.
Copyright Business Recorder, 2025
