Flour Mills Resume Normal Operations, Strike Postponed Until July 22

The Pakistan Flour Mills Association (PFMA) has decided to delay its strike until July 22, following assurances from the government regarding the resolution of the withholding tax issue. This decision was reached after a meeting between the PFMA delegation and a special committee formed by Prime Minister Shehbaz Sharif. As of today, the millers have resumed normal operations, at least till July 22, Monday. The committee agreed with PFMA’s position and promised a positive resolution by July 22. Prime Minister Shehbaz Sharif asked for suggestions from the Association and assured them of a favorable review. Consequently, the PFMA has postponed the strike, and flour mills have resumed regular operations on Sunday (today). The flour mills had been on strike for the past three days, protesting the government’s decision to make them withholding tax agents. Former PFMA chairman Riazullah Khan criticized the tax implementation during a recent press conference that the government should collect taxes directly from wholesalers and retailers instead of burdening flour mill owners. Flour rates increased by around Rs. 700 per kg, with a 20 kg bag retailing for Rs. 2,500 compared to Rs. 1,800 per bag reported before the strike. Although there were no immediate shortages at retail, such concerns were driving up prices due to speculative pressures. Normally, the flour pipeline holds 200,000 tons of supply, enough to meet five days of national consumption. However, the three-day strike created a gap of about 120,000 tons and put pressure on the market. Speculative pressure, in addition to the actual supply gap, was a natural response, according to Majid Abdullah, a prominent miller from Lahore. The Association had expressed concerns over the imposition of withholding tax, and the government’s special committee agreed to address this issue. A PFMA spokesperson said the strike was called off out of respect for the holy month of Muharram and the government’s assurances.