ISLAMABAD: The government has finalized a plan to import 500,000 tonnes of sugar to address dwindling domestic supplies and stabilize the market amid surging prices.
According to officials, this new import strategy is more targeted and effective than previous approaches. The Ministry emphasized that unlike past years, when artificial shortages were created to justify subsidies, this move is solely aimed at correcting the market naturally driven by supply and demand issues.
It was also noted that the decision to permit sugar exports earlier was made when domestic stocks were plentiful. Now, due to significant price increases, importing sugar has become essential to restore equilibrium in the market.
Meanwhile, retail sugar prices are climbing sharply. From Rs125–130 per kilogram in December 2024, the rate has now jumped to Rs190–200 in stores across major cities. In Lahore, prices rose by Rs6 per kg to Rs190, while Quetta saw an increase of Rs5, bringing the rate to the same level. Karachi has seen the highest prices, with sugar selling for as much as Rs200 per kilogram.
Traders initially assured the government that prices would stabilize following the export permits and claimed that there would be no need for imports in 2025. However, with prices continuing to escalate, the government has been compelled to intervene to curb inflation and protect consumers.
Last month, the Sugar Advisory Board, led by Federal Minister Rana Tanveer Hussain, approved the import of 500,000 tonnes, just months after allowing the export of 750,000 tonnes from June 2024 through January 2025.
Minister Hussain stated that disruptions in the supply chain and non-compliance by mill owners had contributed to price volatility. He highlighted that rising sugar prices are not only affecting households directly but also raising the cost of numerous food products, adding financial strain on ordinary citizens.
Criticism has grown over the timing of this decision, with analysts and consumer rights advocates arguing that the government’s earlier policy of permitting exports despite looming shortages was shortsighted. They contend that reversing course now, at the cost of public funds and consumer confidence, reflects poor planning and mismanagement.
