Sugar Prices Soar in Rawalpindi and Islamabad Amid Shortage

The sugar shortage in Rawalpindi and Islamabad has reached critical levels, according to local market sources.

Despite assurances from authorities, sugar has largely vanished from store shelves throughout Rawalpindi, with both wholesalers and retailers reporting empty stocks.

In retail outlets, sugar prices have soared to between Rs. 190 and Rs. 200 per kilogram, while the cost of a 50-kg bag in the wholesale market has climbed to as much as Rs. 9,300.

This scarcity isn’t limited to the twin cities; similar reports are emerging from Attock, Chakwal, and Talagang.

Sugar mill owners are blaming the crisis on depleted inventories and disruptions in supply chains. In response, the district administration has begun a crackdown to curb soaring prices, imposing hefty fines on shopkeepers.

Meanwhile, the central traders’ association has called an urgent meeting to address the situation.

On the national front, the International Monetary Fund (IMF) has raised concerns about Pakistan’s recent decision to grant tax breaks and subsidies on imported sugar. According to sources, the IMF has warned these measures could threaten the country’s ongoing $7 billion loan agreement.

Official sources say the IMF is particularly opposed to the government’s plan to subsidize imported sugar by Rs. 55 per kilogram, especially since the imported product is expected to cost Rs. 249 per kg.

The IMF has also dismissed the government’s argument that the imports are part of “food emergency” efforts, expressing skepticism that the sugar will reach ordinary households rather than industrial buyers. The lender cautioned that such policies could undermine fiscal discipline and the intended public benefit.