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The packaged milk market continues to operate below its pre-tax levels, driven by the 18% sales tax imposed on UHT milk in July 2024. The uneven playing field versus loose milk, which remains outside the tax net, continues to suppress volumes in the formal dairy sector. Company continued to actively engage with relevant government stakeholders to advocate for equitable taxation, underscoring the adverse impact of the current tax regime on public health, farmer livelihoods, and the documented dairy economy.
The regional conflict continued to create challenges for the operating environment during the first half of 2026. Shipment delays and elevated freight costs weighed on the value chain, while multiple revisions in fuel prices during the period added further volatility to input costs.
On the domestic front, inflation trended higher during the period, prompting increase in policy rate as well. Collectively, these dynamics continue to have a bearing on category affordability and demand.
Leveraging its global expertise and 150 years of heritage, FCEPL remains committed to the highest standards of hygiene, food safety and sustainability and providing safe, affordable and nourishing dairy products to millions of Pakistanis, every day.
The packaged milk market continues to operate below its pre-tax levels, driven by the 18% sales tax imposed on UHT milk in July 2024. The uneven playing field versus loose milk, which remains outside the tax net, continues to suppress volumes in the formal dairy sector. Company continued to actively engage with relevant government stakeholders to advocate for equitable taxation, underscoring the adverse impact of the current tax regime on public health, farmer livelihoods, and the documented dairy economy.
The regional conflict continued to create challenges for the operating environment during the first half of 2026. Shipment delays and elevated freight costs weighed on the value chain, while multiple revisions in fuel prices during the period added further volatility to input costs.
On the domestic front, inflation trended higher during the period, prompting increase in policy rate as well. Collectively, these dynamics continue to have a bearing on category affordability and demand.
Leveraging its global expertise and 150 years of heritage, FCEPL remains committed to the highest standards of hygiene, food safety and sustainability and providing safe, affordable and nourishing dairy products to millions of Pakistanis, every day.
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