Smuggled goods perturb FMCG sector

The fast moving consumer goods (FMCG) companies in Pakistan have stated that smuggled or illegally imported products from Iran were posing significant threat to their profits and sales. They highlighted that such goods cost half as much as locally available ones and their availability was increasing on the back of climbing inflation reading. To highlight the issue, the Pakistan Dairy Association (PDA) penned letters to the concerned authorities including provincial food authorities, Federal Board of Revenue and Pakistan Customs. The authority remarked that items such as Iranian dairy creams, liquid milk and flavored milk were being sold in Pakistan through parallel trade routes. “In addition to causing heavy losses to the national exchequer, these products are also violating the labelling requirements, applicable quality and nutritional standards of provincial and federal food departments,” it added. The letter noted that despite the legal requirement to check imported processed food products, unregulated and non-compliant dairy items were widely available in the local markets which could be detrimental to the health of Pakistanis.