Pakistan struggles with flour shortages during millers’ strike

LAHORE: Pakistan’s urban population is likely to face a shortage of flour as the All-Pakistan Flour Mills Association (PFMA) went on strike on Thursday in protest against the new withholding tax, Pakistani daily Dawn reported.

Flour traders and owners of atta chakkis (small wheat mills) joined the protest, causing disruption in the flour supply, Dawn reported.

PFMA Chairman Asim Raza said the measure had turned flour mills into tax collectors. He said the tax was expected to increase the price of flour by 8 Pakistani Rupees (PKR) per kg.

Raza said he would continue the strike until demands were met and that the strike would have a negative impact on the supply chain.

“The tax measure is unacceptable and impractical as flour traders refuse to collect their consignments instead of sharing their tax data for withholding tax purposes,” he said.

Raza said imposing a tax of PKR 600 on a sack of flour worth PKR 11,000 was unreasonable. He rejected the claim of Punjab Food Minister Bilal Yasin and said the strike had not been postponed till Ashura (July 17).

He added: “Neither the government nor the FBR have contacted us for discussions or reconsideration of the strike.”

Iftikhar Ahmed Mattoo, chairman of PFMA Punjab chapter, said, “We do not want to inconvenience the public during Muharram festival. Therefore, the industry has continued to supply flour to the market till July 10 despite a tax burden of crores of rupees.”

Mattoo said that it was not possible for them to bear the tax burden at present and so “extreme measures have to be taken”. He said that flour mills across the city had joined their call to ensure the survival of the industry, Dawn reported.

The strike reportedly led to a shutdown of wheat supplies across the country, which also brought the availability of flour and related products to an abrupt halt.

Aamir Abdullah, PFMA chairman for Sindh, confirmed an indefinite strike until the government withdraws the tax measures, pointing out that the suspension of wheat supply had also affected the supply of bran for livestock.