Staff Report
ISLAMABAD:
The Public Accounts Committee (PAC) has expressed grave concern over the skyrocketing sugar prices across Pakistan and has sought immediate records of all sugar mill owners and exporters.
Despite repeated demands, the government refused to disclose the names of those involved in sugar exports and beneficiaries of tax exemptions.
The PAC meeting, chaired by MNA Junaid Akbar, was attended by lawmakers including Omar Ayub, Riaz Fatyana, and Senator Fauzia Arshad, and focused on the recent sugar crisis and alleged manipulation by the sugar industry.
During the meeting, it was revealed that sugar prices had surged to Rs210 per kg in Karachi and Rs215 in Haripur, while the national average price stood at Rs173 per kg. The Committee sharply reprimanded the Secretary of the Ministry of National Food Security & Research for presenting inaccurate data.
A briefing by the Ministry of Industries and Production stated that the government approved the export of 5.09 million tonnes of sugar over the last decade, but only 3.927 million tonnes were actually exported, generating foreign exchange earnings of over $400 million. Officials assured that sugar stocks were sufficient to meet national demand until November.
However, lawmakers reacted strongly to these claims. Riaz Fatyana and Senator Fauzia Arshad alleged that the nation had been defrauded of Rs287 billion through sugar price hikes, accusing the government of allowing sugar to vanish from the market and enabling profiteering.
PAC members questioned the rationale behind granting subsidies and overnight tax exemptions for sugar exports, including the issuance of sudden Statutory Regulatory Orders (SROs).
MNA Moeen Pirzada went further, alleging that top government officials, including the President and Prime Minister, were enriching themselves at the expense of the public, and described the Sugar Advisory Board as the root cause of the crisis. He claimed the “sugar mafia” is embedded within successive governments.
Despite demands from PAC, the government withheld names of sugar mill owners and directors, prompting strong warnings from the committee. Chairman Junaid Akbar insisted that if the names were not submitted promptly, the committee would move a privilege motion against the concerned ministry.
Officials from the Ministry of Industries shared that in the last crushing season, Pakistan produced 7.66 million metric tons of sugar, with a surplus of 1.3 million tons, out of which 500,000 tons were reserved for next year. The federal cabinet and ECC had allowed the export of 790,000 tons in three phases, earning significant foreign exchange.
It was also revealed that sugar was being exported when the local price stood at Rs143 per kg, which has since climbed to Rs173 per kg, prompting the Prime Minister to form a special committee under Deputy PM Ishaq Dar to investigate the price hike.
