The federal government has decided to import 750,000 metric tons of sugar after exporting 765,734 tons earlier in FY2024-25.
Deputy Prime Minister Ishaq Dar announced on Thursday that 500,000 tons of refined sugar have been approved for import, while a policy to import 250,000 tons of raw sugar will be sent to the cabinet for approval. The Economic Coordination Committee (ECC) will also be asked to formally approve the imports.
Between July and May, sugar exports surged by 2,200 percent compared to the previous year, generating Rs. 114 billion, according to the Pakistan Bureau of Statistics. Following the exports, retail sugar prices rose from Rs. 140 to Rs. 190 per kg.
Imported sugar without taxes would cost Rs. 153 per kg, still cheaper than local rates.
Pakistan’s annual sugar consumption is 6.4 million tons, with monthly demand averaging 535,000 tons. This year’s production was 5.9 million tons, down 14 percent from the previous season.
The government’s export-first, import-later approach has caused an artificial shortage and price spike, benefiting well-connected millers. The sugar export decision also contradicts the government’s shift towards free-market policies.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
If the government had done Import-first, then Export-later, that approach would have resulted in price drop, with same net volume result.
But they wanted to move money : from the pocket of consumers –> to the pocket of distributors.
Musical chairs…..
The country has enough quantity of sugar bags in the sugar factories warehouses . But like each year all concerned persons are playing musical chairs games.
Looting of Pakistan exchequer is now routine. No one can ask .
Funny how every screw up of people requires jail or punishment
While govt failures are ignored .
Israel is pakistan
Corruption at its best