Flour shortages likely in Pakistan as millers begin countrywide strike

Author:

Flour mills across several cities, including Karachi, initiated a strike today (Thursday) in response to a newly imposed withholding tax. This action has raised alarms about a potential flour crisis as wheat grinding facilities nationwide come to a standstill.

Aamir Abdullah, Chairman of the Pakistan Flour Mills Association (PFMA) South, announced the start of an indefinite strike, leading to a complete halt in flour supply from all mills, including those in Karachi. The strike is also expected to significantly impact the supply of bran to livestock in buffalo colonies.

PFMA leaders highlighted that the government increased the withholding tax by as much as 5.5% across various points in the staple food supply chain in the 2024-2025 budget, thereby escalating product costs.

With the supply chain disrupted due to the walkout, concerns are mounting about a potential national flour shortage. Furthermore, more than 250 flour mills in Khyber Pakhtunkhwa, including those in Peshawar, have ceased operations.

The PFMA warned that unless the deadlock between the government and the association is resolved, there is a risk of severe flour shortages in the market. As a result of the strike, the production of flour bags weighing 5kg, 10kg, and 20kg has ceased from today onwards.