The unveiling of a tax-heavy budget by the government, in response to demands from the International Monetary Fund (IMF), has triggered significant price increases in staple food items across Pakistan. Here’s a detailed overview of the situation:
Price Surge in Essential Commodities
Following the implementation of the budget from July 1, 2024, the prices of several essential food items have seen notable hikes:
- A 50 kg bag of sugar now costs Rs6,950, marking an increase of Rs250.
- Prices for ghee have risen by Rs300 per packet.
- Cooking oil prices have surged by Rs40 per kg.
- Moong dal prices have increased by Rs60 to reach Rs340 per kg.
Broader Impact on Food Market
In addition to sugar, ghee, cooking oil, and moong dal, other commodities such as flour, dry milk, packed milk, and more have also witnessed price escalations due to the new budgetary measures for the fiscal year 2024-25.
Protests by Flour Mills Association
The Flour Mills Association has initiated protests against the implementation of Withholding Tax, resulting in closures of flour mills across different cities in the country. Owners of these mills are urging the government to reconsider and withdraw the decision, highlighting the economic strain faced by the industry.
Conclusion
The tax-heavy budget introduced to comply with IMF demands has had a direct impact on the cost of living for Pakistani citizens, particularly affecting the affordability of staple food items. The ongoing protests by the Flour Mills Association underscore the discontent within sectors directly affected by these fiscal policies, reflecting broader economic challenges and concerns within the country.
