TRADE & ECONOMY
Flour mills across Pakistan have launched a nationwide strike in protest against newly imposed withholding tax measures, sparking fears of a looming flour shortage and potential price hikes for consumers.
The All-Pakistan Flour Mills Association (PFMA) initiated the strike, joined by atta chakki owners and flour dealers in various towns. PFMA Chairman Asim Raza emphasized that the strike would persist until the government addresses their concerns regarding the withholding tax.
The controversial tax requires flour mills to act as withholding agents for tax collection, a move criticized by industry leaders who argue it will raise flour prices by Rs8 per kilogram. Asim Raza condemned the tax as impractical and burdensome, alleging that flour dealers are reluctant to comply, disrupting the supply chain.
Despite claims by Punjab Food Minister Bilal Yasin that the strike was postponed until after Ashura, PFMA officials deny any official communication from the government or the Federal Board of Revenue (FBR) regarding talks.
Iftikhar Ahmed Mattoo, chairman of PFMA's Punjab chapter, stressed the financial strain on mills, citing rising electricity costs and asserting that the tax burden is unsustainable. He called for the government to reconsider the tax to avoid further economic hardship for the industry and consumers.
With 1,725 flour mills nationwide, including significant numbers in Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan, daily flour consumption in Pakistan stands at approximately 45,000 tonnes. The ongoing strike has already disrupted flour supplies in cities like Lahore, Karachi, and Hyderabad, impacting grocery stores, restaurants, and livestock feed.
Aamir Abdullah, PFMA chairman for Sindh, confirmed that the strike would continue indefinitely until the tax measures are revoked, highlighting broader implications for the supply chain beyond flour production.
The strike underscores ongoing challenges in Pakistan's food supply sector, exacerbated by economic pressures and regulatory disputes.