By Staff Reporter
ISLAMABAD: Pakistan is set to import 750,000 metric tonnes of sugar following a massive export push that drained domestic supplies and sent prices soaring to all-time highs.
The decision comes after the country exported 765,734 metric tonnes of sugar between July and May this fiscal year, raking in Rs114 billion, a staggering 2,200% jump in revenue compared to the same period last year.
The export boom, however, has hit consumers hard. Domestic sugar prices have climbed to Rs190 per kilogram, up from Rs140 before the exports began, marking a 36% increase.
Deputy Prime Minister Ishaq Dar, responding to the crisis, announced the import plan on X, saying it as a preemptive step to stabilize prices. The government insists current stocks are adequate, but the import volume, nearly matching this year’s exports, hints at a deeper supply shortfall.
The Pakistan Sugar Mills Association (PSMA) pegs annual sugar consumption at 6.4 million tonnes. With production this year dropping 14% to 5.9 million tonnes due to unfavorable weather and lower cane yields, stocks stand at 2.8 million tonnes. At a monthly consumption rate of 535,000 tonnes, that’s enough to last until November, barely. The planned 750,000-tonne import, priced at Rs153 per kilogram (excluding duties), undercuts the domestic peak by Rs37, offering a cost-effective buffer.
The government’s initial green light for exports has drawn flak. Critics argue it favored sugar millers’ profits—bolstered by the Rs114 billion windfall, over consumer affordability. The PSMA, long accused of cartel-like practices, has suggested measures like cracking down on smuggling and advancing the next crushing season to ease supply woes. Skeptics, however, see these as bandaids on a self-inflicted wound.
Dar, who led a recent meeting with officials from the Federal Board of Revenue, the Federal Investigation Agency, and provincial authorities, stressed a dual focus: keeping sugar affordable while supporting producers. The import proposal now heads to the Economic Coordination Committee for final approval.
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