Sources have indicated that the IMF has urged the Pakistan government to remove the authority of regulating milk and red meat prices from deputy commissioners, advocating for market-based pricing instead.
In response to the IMF’s recommendation, the federal government is now contemplating the deregulation of milk, beef, and mutton prices. This move would end official price monitoring, thereby exposing consumers to the fluctuations of market demand and supply.
Federal and provincial government officials, along with industry stakeholders, have reportedly concurred that deregulating prices is essential for the growth of the livestock sector. They also stated the importance of implementing regulatory mechanisms to ensure the quality of milk, meat, and mutton.
A proposal to deregulate milk and meat prices is expected to be submitted to the Economic Coordination Committee (ECC) for approval.
The Pakistan Dairy Cattle and Farmers Association has endorsed the decision to deregulate prices. However, experts warn that this could lead to unprecedented levels of inflation following the removal of price caps.
