Islamabad 22 July: The National Assembly’s Standing Committee on Commerce has launched a probe into the sharp rise in sugar prices, suspicious trade patterns, and possible collusion between politicians, bureaucrats, and sugar mill owners.
Committee Chairperson Jawed Hanif Khan called the situation “suspicious”.
A sub-committee will focus on how sugar was exported and then re-imported duty-free, allegedly benefiting specific stakeholders. All ministries and departments involved will be summoned. The Pakistan Sugar Mills Association (PSMA) confirmed an agreed ex-mill sugar price of Rs165/kg.
READ MORE: Govt Increases Sugar Price for Tax
The committee also reviewed the Ministry of Commerce’s export policy aiming for $60 billion by 2029. PML-N’s Shaista Malik criticized it, citing industry closures due to high energy costs. Officials admitted past targets were missed, blaming lack of competitiveness and climate impacts on agriculture.
On car imports, the committee was told that new vehicles are allowed with reduced duties, but importing old used cars remains banned. A new auto policy is coming in 2026.
Regarding the Trading Corporation of Pakistan (TCP), the committee approved payment of dues but rejected its request to skip a special audit of bank loans.
Key Economic Insights:
- Sugar industry generated Rs1.4 trillion in 2024–25 from 8.8 million tons of sugar.
- Molasses (used in ethanol) brought in Rs154 billion; most is exported.
- Bagasse (sugarcane waste) produced 24 million tons, powering mills and nearby industries.
- Some mills also use this energy to make steel, saving billions on electricity.
- No new sugar mill licences have been issued, allowing existing mills to dominate and profit.
