By Staff Reporter
ISLAMABAD: Pakistan has allowed 100,000 tonnes of sugar exports, the finance ministry said on Thursday, as it seeks to generate foreign exchange for state coffers and revenue for cash-hungry mills.
The decision was taken by the Economic Coordination Committee (ECC) of the cabinet headed by Finance Minister Ishaq Dar.
The ECC approved a summary of the food security ministry, the ministry in a statement said, adding it will apply to sugar exports during the fiscal 2022-2023 year.
“The ECC considered and approved a summary of the Ministry of National Food Security and Research regarding the export of sugar during FY 2022-23 and allowed the export of sugar up to 100,000 MT.”
Prime Minister Shehbaz Sharif, in May this year, imposed a ban on the export of sugar, owing to the commodity’s domestic demand.
The ministry said sugar prices in the local market will not increase until at least January 31.
“The ECC further directed and PSMA (Pakistan Sugar Mills Association) committed that the existing price of sugar will not increase in the domestic market at least till January 31, 2023.”
The sugar millers have been demanding the export of 1.2 million tonnes. They delayed crushing as provincial governments enhanced minimum support by over 30 percent for the current crop season.
Analysts said the move was a bid to boost the country’s foreign reserves, which have fallen to as low as $6.7 billion, barely enough to cover a month of imports.
The government was resisting sugar export, fearing that the move could lead to shortage and price hikes in the domestic market to the political disadvantage of the coalition government already facing public criticism for unprecedented inflation that hit 26.6 percent in October.
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