Pakistan to Import 750,000 Tonnes of Sugar After Exporting Nearly Same Amount

The government has decided to import 750,000 metric tonnes of sugar after having exported nearly the same quantity during the current fiscal year, a move that has been described as paradoxical and has driven domestic sugar prices sharply higher.

Specifically, Pakistan exported 765,734 metric tonnes of sugar between July and May this fiscal year, earning Rs114 billion, marking a 2,200% increase compared to the previous year.

The import plan involves submitting a policy to the cabinet for approval to import 250,000 metric tonnes of raw sugar, while 500,000 metric tonnes of refined sugar have already received in-principle approval.

This sequence of exporting first and then deciding to import has raised questions about the government’s rationale and has been criticised for hurting domestic supply and inflating prices. Domestic sugar prices have risen to a record Rs 190 per kilogram, up Rs 50 from the pre-export price, benefiting sugar millers but disadvantaging consumers.

Officials from the Ministry of National Food Security claim that there are sufficient stocks of sugar in the country and that imports are being considered to stabilise prices. However, critics argue this cycle of exporting sugar and then importing it back at higher prices exemplifies flawed governance and benefits powerful sugar mill owners with political connections, who manipulate supply to maximise profits.

The government’s decision to import sugar after large-scale exports has led to sharply increased domestic sugar prices, benefiting millers but raising concerns about policy contradictions and consumer impact in Pakistan