The Urgent Need to Protect Pakistan’s Health and Economy

Masood Ur Rehman Kiani
A Call for Higher Taxes on Sugary Drinks and Ultra-Processed Food Products Imagine living in a world where the sweetest treats you purchase conveniently from a bakery, become your deadliest enemies. Can you envision a future where our children are more likely at risk from a sugary drink than a bullet? – This isn’t a distant futuristic nightmare; it’s the harsh reality in Pakistan today. Statistics suggest that more than 58 percent of all deaths in our country are due to non-communicable diseases (NCDs), with cardiovascular diseases alone claiming over half of the lives. The situation has gone to the level that now Pakistan has the third-highest number of people living with diabetes globally, with numbers skyrocketing to 33 million in 2021. This number is projected to balloon to 62 million by 2045, if no immediate policy action is taken. And one of the major contributor to this gloomy situation in my country is Sugar-Sweetened Beverages (SSBs) and Ultra-processed Products (UPPs). Perhaps, I would consider them a significant public health concern. As I reflect on my own loved one’s struggles with diabetes, I realize that the alarming rise in NCDs isn’t just a statistic; it’s a personal tragedy for millions of families. In Pakistan, sugary drinks constitute a majority of everyday consumption of beverages, highlighting the scale of the problem. An average sugary drink of 500 ml contains 14 to 17 teaspoons of sugar, putting regular consumers at a significantly higher risk of developing Type 2 diabetes. The economic implications of these sugary drinks and UPPs are staggering. The annual healthcare costs for obesity and diabetes are in billions of Dollars, with indirect costs like lost productivity and premature deaths further exacerbating the economic burden. As a country struggling financially, we cannot afford to ignore this crisis. In fact, over 1,100 people die daily in Pakistan due to diabetes and its associated complications, according to the International Diabetes Federation. Over 300 limbs are removed daily due to type 2 diabetes in Pakistan. Yet, despite the clear link between sugary drinks, ultra-processed foods, and rising NCDs, our policy-makers have largely ignored this issue. Instead, of putting taxes on these items, they had preferred to place heavier taxes on essential items like electricity, energy, and fuel, disproportionately affecting lower- and middle-income households. This makes it harder for such families to afford nutritious food while allowing multinational companies to thrive without accountability. Currently, Pakistan taxes sugary drinks and ultra-processed foods at disproportionately low rates compared to essential commodities. According to recent reforms, the excise tax on carbonated beverages, Juices, squashes, and syrups has been increased to 20%. However, more needs to be done to align with international standards. Many countries have shown us a way forward in tackling this situation. Mexico introduced a sugary drink tax in 2014, leading to a 7.6% decline in sugary drink consumption within two years. The UK’s Soft Drinks Industry Levy significantly reduced sugar content in beverages, improving public health and generating revenue for healthcare programs. In Pakistan, public sentiment is also in favor of taxes on sugary drinks to reduce obesity and diabetes. A national opinion poll conducted in 2022, revealed that over 78% Pakistan adults support increasing taxes on all type of sugary drinks. The government of Pakistan is currently negotiating another tranche of loans with the International Monetary Fund (IMF). Therefore, we urge the IMF to include higher taxation on sugary drinks and ultra-processed foods in its economic recommendations to Pakistan. Such recommendation would not be a new thing for the IMF. Perhaps, the global financial institution has a history of advising national governments to implement fiscal measures that benefit public welfare. The IMF must recognize the significance of this recommendation. Once implemented, it would positively impact Pakistan by achieving multiple objectives.[CONTINUE] Higher taxes could lead to reduced consumption of sugary drinks and UPPs, decreasing the prevalence of obesity, diabetes, and cardiovascular diseases. The additional tax revenue could fund public health initiatives, including awareness campaigns, improved medical facilities, and subsidizing healthier food options. It’s time for our policymakers to stop penalizing essential commodities while allowing harmful products to remain affordable.