Pakistan Faces Flour Shortage as Millers Strike Over Tax

Pakistan's urban areas are set to experience a flour shortage due to a strike by the All-Pakistan Flour Mills Association (PFMA) in response to a new withholding tax. The strike has disrupted the supply chain, with no resolution in sight as the government remains uncommunicative.

Pakistan's urban population could face a potential flour shortage following a strike by the All-Pakistan Flour Mills Association (PFMA) in protest against a new withholding tax, reports Dawn. Flour dealers and small wheat grinding units joined the PFMA's demonstration, disrupting the flour supply chain.

Asim Raza, PFMA's chairperson, stated that the tax has made flour mills withholding agents, potentially increasing flour prices by PKR 8 per kilogram. He insisted the strike would continue until their demands are met, warning of adverse effects on the supply chain.

Raza criticized the PKR 600 tax on a PKR 11,000 flour bag, dismissing Punjab Food Minister Bilal Yasin's claims of a postponed strike. The government and tax authorities have not engaged with the PFMA for talks. Meanwhile, the industry faces an unbearable tax burden, halting wheat supply nationwide and impacting flour availability and related products.

Aamir Abdullah, PFMA's Sindh chairman, confirmed an indefinite strike until the tax is withdrawn, highlighting the disruption in bran supply for livestock.

(With inputs from agencies.)