Flour dealers and representatives of the Karyana Association have raised alarms over an imminent flour crisis in the city as stocks dwindle rapidly.

Currently, only one to two days' worth of stock remains available with flour dealers across Lahore, exacerbated by a surge in flour purchases amid the ongoing Ashura observances.

The situation has been exacerbated by a deadlock between federal authorities and flour mills over the implementation of withholding tax, leading to many mills being shuttered. As a result, the supply chain for flour has been severely disrupted, causing shortages in the market.

Members of the Karyana Association have pointed out that the stock of flour has been depleting at an accelerated rate due to increased consumer demand and limited availability from mills. Grocery stores, which rely on continuous replenishment from mills, are now struggling to meet the demand. 

"If the current situation is not resolved within the next two days, there is a genuine fear of a severe flour crisis hitting Lahore," warned a spokesperson from the Karyana Association. They emphasized that immediate action is necessary to ensure the uninterrupted supply of flour to the city's residents.

Also Read: Widespread flour shortage as mills across Pakistan observe strike

In response to the looming crisis, consumers have been observed buying larger quantities of flour, further straining the already limited supplies in grocery stores. The upcoming days are critical, with stakeholders urging swift resolutions to the deadlock between authorities and mill owners to avert a full-blown crisis.

On July 11, the All Pakistan Flour Mills Association initiated a nationwide strike and shut down mills across the country in protest against the imposition of a withholding tax, leading to disruptions in the supply of flour across major cities.

Association Chairman Asim Raza told Samaa TV that they had decided to continue the strike until their demands are met, highlighting concerns over the newly introduced tax measures.

Raza expressed strong opposition to the government's decision to designate flour mills as withholding agents for tax collection, seeking an exemption from the move and labelling it as unacceptable. He also warned of increased flour prices due to the 5.5% withholding tax. He emphasized that this tax would significantly impact consumers and disrupt the supply chain.

"A Rs605 tax on a sack of Rs11,000 is not appropriate," Asim Raza stressed, announcing that the nationwide strike will continue until their demand was met. "No formal contact has been made by the government or the FBR."