Islamabad 12 August: The Federal Board of Revenue (FBR) has suspended 14 officials accused of illegally releasing sugar stocks and placed them under investigation, a National Assembly committee was informed on Tuesday.
Chaired by PTI’s Atif Khan, the panel sought from the Securities and Exchange Commission of Pakistan (SECP) the names of sugar mill directors holding at least 20% shares, amid claims that millers and dealers made windfall profits of Rs300 billion through price manipulation.
The Ministry of Industries and Production told lawmakers that after the sugar export deadline expired, millers and dealers pushed prices higher, earning around $440 million from exports.
In 2024-25, sugarcane cultivation rose 1.11%, but extreme weather and crop disease lowered yields and sucrose recovery, cutting sugar output to 5.862 million metric tons (MMT)—one MMT less than the previous year.
With 0.5 MMT in carryover stocks, total availability stood at 6.362 MMT, just enough to match domestic demand, driving price surges early in 2024.
Price talks between the government and the Pakistan Sugar Mills Association (PSMA) set an ex-mill cap of Rs159 and retail price of Rs164 per kg until April 19, 2025. However, in May, millers breached the agreement and continued raising prices. FBR said its track-and-trace system—introduced in 2021—was bypassed, with unstamped sugar bags released in collusion with mill officials. Several trucks carrying unstamped sugar have since been seized.
Despite lower production, sugar sales tax collections jumped to Rs100 billion from Rs65 billion last year. The prime minister has ordered a special team, including intelligence agencies, to monitor FBR’s enforcement.
Officials said sugar imports may be capped at 200,000 tons to stabilise prices, with current stocks sufficient until November 2025. The committee resolved to summon SECP to identify mill directors and disclose the names publicly to probe possible political links.
The panel will also review Public Accounts Committee records citing the Auditor General’s finding that millers made Rs300 billion in profits within three weeks.
