Pakistan Dairy Association: A Pillar in Pakistan's Dairy Industry

The Pakistan Dairy Association (PDA), located in Karachi, Pakistan, serves as a central platform for dialogue and coordination among stakeholders within the dairy supply chain, including dairy farmers, processors, and related industries across the nation.

Economic Impact and Financial Indicators

While specific financial metrics for the PDA are not publicly disclosed, the broader dairy sector in Pakistan is a significant component of the national economy. As the fourth largest milk-producing country worldwide, Pakistan's dairy industry is valued at approximately $8.1 billion, contributing substantially to the agricultural GDP and supporting millions of livelihoods throughout the supply chain.

Recent Developments and Important Events

The PDA has been actively involved in discussions surrounding the impact of the General Sales Tax (GST) on dairy prices. Concerns have been raised regarding the GST on dairy products potentially leading to higher consumer costs, negatively affecting demand and accessibility. In an important event, the PDA engaged with Federal Minister for Planning, Development & Special Initiatives, Professor Ahsan Iqbal, to address challenges in the dairy sector due to the imposition of an 18% sales tax on packaged milk.

Future Plans and Strategic Initiatives

The Pakistan Dairy Association is committed to advocating for policy reforms that benefit the dairy industry. It intends to continue its dialogue with the government to address issues such as taxation, supply chain disruptions, and necessary infrastructural improvements. The PDA aims to enhance dairy production efficiency and quality to better serve domestic and international market demands. They have proposed a Rs50 per litre reduction in milk prices if the sales tax is decreased, warning of potential declines in revenue collection and industry exports if the current tax rate persists. A reduction in sales tax could boost volumes and government revenue, spur investments, and reduce reliance on the informal economy.

Leadership and Strategic Vision

Under the leadership of CEO Dr. Shehzad Amin, the Pakistan Dairy Association is tackling various challenges facing the dairy sector, including tariff and taxation issues and the need for improving productivity and genetic quality of dairy breeds. The PDA has proposed stricter regulations to ensure that only pasteurized or properly packaged milk is sold, alongside financial support for farmers, better access to banking services, and investments in breeding programs to enhance yields.

The association also represents Pakistan's dairy industry in international trade, emphasizing the country's livestock population, milk supply, and processing infrastructure. Pakistani dairy firms are capable of exporting and meet international quality and Halal requirements.