Pakistan : PAC questions sugar price surge, criticizes ministries’ inaction
The Public Accounts Committee (PAC) criticized ministries for failing to report on rising sugar prices, summoning key federal secretaries. It also flagged Rs11 billion in irregular payments for development projects. Meanwhile, the Pakistan Sugar Mills Association blamed hoarders for price spikes but assured stability until April 19, with discounted sugar available at Ramadan stalls.
The Public Accounts Committee (PAC) raised concerns about the rising sugar prices, expressing frustration over the failure of relevant ministries to submit a report on the matter.
PAC Chairman Junaid Akbar Khan, unhappy with the lack of response, summoned three federal secretaries — from the ministries of industries, national food security, and commerce — to explain the delay.
The PAC meeting also reviewed audit objections related to the Ministry of Housing and Works for the fiscal years 2022-23 and 2023-24. Of particular concern were revelations that Rs11 billion had been disbursed to contractors for development projects without mandatory laboratory reports.
During discussions on these financial irregularities, the Secretary of Housing and Works attributed delays in grant disbursements to late fund releases. The Ministry of Finance also faced criticism for not releasing funds on time.
PAC member Naveed Qamar called the late release of funds on June 26 “absurd.” The committee also questioned finance officials on whether funds had been allocated for lapses. Naveed Qamar proposed that the Secretary of Finance and the Secretary of Planning be summoned to address the issue. The committee decided to defer the matter until the next meeting.
On the sugar price issue, a spokesperson for the Pakistan Sugar Mills Association (Punjab Zone) stated that the surge in prices caused by the Satta Mafia, profiteers, and hoarders had been reversed following the government’s decision to set ex-mill and retail price benchmarks. The PSMA assured consumers that there was no sugar shortage and that the industry had sufficient stocks to meet demand.
The spokesperson claimed that the rumors inflating sugar prices were largely spread by hoarders and market manipulators. With prices now aligned with the government-set benchmark, which was agreed upon by the industry, sugar will remain at this price until April 19. Additionally, discounted sugar is being offered at Rs130 per kg at 274 stalls during Ramadan.
The industry also dismissed reports linking sugar price hikes to exports, calling them baseless. The PSMA has urged the government to implement a two-tier pricing system, differentiating between industrial and domestic consumers, and to consider subsidizing sugar for low-income households through programs like the Benazir Income Support Program.
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Source : Profit Pakistan Today
