Pakistan Moves to Export Another 200,000 Tonnes of Sugar
Pakistan’s steering committee approved exporting 200,000 tonnes of surplus sugar, subject to ECC approval, with stocks sufficient until the next crushing season. The move follows earlier exports that triggered price increases, amid IMF concerns over sector regulation and market practices.
Deputy Prime Minister Ishaq Dar chaired a steering committee meeting on sugar and approved the proposal. However, the Economic Coordination Committee (ECC) must approve the final decision.
This marks the second sugar export decision in three weeks. Earlier, the ECC approved the export of 108,000 metric tonnes of imported sugar on August 19.
According to Dar’s office, the country has enough sugar stocks to meet domestic demand until the next crushing season. Federal Minister for National Food Security Rana Tanveer Hussain also confirmed the decision.
Hussain said the country could have more than 600,000 metric tonnes of surplus sugar after meeting domestic needs. The government plans to export 200,000 metric tonnes from this surplus, subject to ECC approval.
Meanwhile, the steering committee decided to create a mechanism to prevent a sharp rise in sugar prices. Dar also directed officials to monitor the market and take timely action to protect food security and maintain stable prices.
Sugar currently sells at an average of Rs. 148 per kilogram. The price stands around 18% below last year’s level because of improved production.
However, the government’s previous export decision triggered a sharp price increase. The Ministry of National Food Security told the ECC last month that last year’s exports, combined with a 15% drop in production, pushed sugar prices to Rs. 220 per kilogram.
In June 2025, the government allowed the export of 790,000 metric tonnes of sugar. It later approved the import of 500,000 metric tonnes after domestic supplies fell. However, the government imported only 300,000 metric tonnes.
The government had earlier reached an agreement with the Pakistan Sugar Mills Association (PSMA). Under the agreement, millers had to keep ex-factory sugar prices between Rs. 165 and Rs. 171 per kilogram until October 15, 2025.
However, millers failed to maintain those prices. Sugar prices later climbed to Rs. 220 per kilogram.
The latest decision has also drawn attention because of the IMF’s findings on Pakistan’s sugar sector.
The IMF’s Governance and Corruption Diagnostic Assessment report highlighted close links between sugar producers and state regulators. The report said influential industry groups had benefited from government policies, subsidies and regulatory loopholes.
The IMF also linked political influence in the sugar sector to decisions on exports, prices and tariffs. It cited the 2018-19 sugar export episode as an example of how export policies contributed to domestic shortages and price increases.
The report further referred to a Federal Investigation Agency (FIA) inquiry. The investigation found evidence of alleged hoarding, price manipulation and financial irregularities in the sector.
The IMF identified Pakistan’s sugar industry as an example of weak regulatory enforcement and anti-competitive practices. It also noted that around 90 licensed sugar mills operate across the country, with several linked to political figures.
As part of its recommendations, the IMF asked Pakistan to reduce the government’s role in the sugar sector. It also required the government to present a policy for the full liberalisation of the sector by June.
The IMF is expected to review Pakistan’s progress on the condition during its visit this month.
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Source : Bloom Pakistan
