As a result of the strike, flour mills and grinding units have been closed, seriously disrupting the supply chain.
Flour Mills Shutdown
Khyber Pakhtunkhwa is one of the states where operations of more than 300 flour turbines have ceased. The fact that these mills had been shut down brought about a near shortage of flour as they could not grind wheat and supply it to markets.
The Impact on Faisalabad
Faisalabad, an important industrial town, has also seen extensive effects from this move. For two days in a row, this city’s flour mills have not opened their doors for business. At the same time, such scarcity could see prices shoot up, imposing an extra burden on ordinary people.
Flour Mills Association’s Demands
In addition, under Shafiq Anjum’s chairmanship, the Flour Mills Association is calling for the immediate scrapping of new taxes and incrementing electricity prices. He further said that should their demands fall on deaf ears, expect them to extend their protests further, thus leading to prolonged disruptions in areas like Kohat Road, which supplies flour.
Tentative Effects on the Market and People at Large
Pakistan’s continuous strike significantly threatens its flour supply chain. The rise in the price of maize starch will likely worsen food insecurity, resulting in higher costs of living for Pakistani families, particularly those with low incomes.
Government Response & Negotiations
The Government has taken note of the concerns raised by the Flour Mill Association and initiated negotiations to address them. Talks are ongoing between representatives from the association and counterparts from the finance and commerce departments.
Necessity for Immediate Solution
Immediate resolution is critical to avoid a full-blown flour crisis in Pakistan. The government and the association should devise a solution that considers the economic problems of milling while ensuring an uninterrupted flour supply. Negotiations have started, but time is running out to avoid further escalation.
summary
The nationwide strike by the Flour Mills Association against withholding tax has revealed how tax regime and economic survival needs are inseparable. The closure of mills and the subsequent breakdown in supply chains demonstrate the need for the government and industry players to encourage effective communication and negotiations. A speedy and fair resolution can prevent prolonged crises that will also impact consumers and larger economies.
