Why is Sugar Expensive in Pakistan? Truth behind Rising Prices

Why is Sugar Expensive in Pakistan? Truth behind Rising Prices

A Bitter reality, The government, far from being a neutral regulator, frequently enables this system through subsidies. Why is Sugar Expensive in Pakistan? Here is the Real Reasons Behind the Rising Cost of Sugar in Pakistan

PM Shehbaz Sharif announced the formation of a high-level committee to deregulate Pakistan’s sugar sector, tasked with reviewing rules on production, pricing, and trade.

The Federal government has approved the import of 500,000 metric tons of sugar just months after allowing the export of nearly the same quantity. This decision has significantly contributed to the current sugar crisis and record-high domestic prices.

However, economic observers and political opponents are questioning the government’s credibility and competence in managing essential commodities, describing the situation as a self-inflicted policy failure.

“First, they allowed exports, driving prices up and rewarding millers, and now they’re importing the same commodity with public money. This is economic mismanagement.

According to the Pakistan Bureau of Statistics (PBS), Pakistan exported 765,734 metric tons of sugar between July and May of the current fiscal year, earning Rs114 billion, a massive 2,200% increase over the previous year.

The move drastic ally shrunk domestic supply and sent prices soaring, with sugar now retailing between Rs170 and Rs190 per kilogram, compared to Rs140–Rs150/kg before exports were approved.

“You can’t sell sugar abroad at a profit and then repurchase it at higher prices to subsidise domestic needs; it’s a classic case of poor governance and policy contradiction,” said a former finance ministry official.

The International Monetary Fund (IMF) has reacted to a major breach of the $7 billion programme and conveyed its reservations about the government’s decision to import 500,000 metric tonnes of sugar by waiving taxes, in violation of written commitments.

IMF criticises Pakistan’s tax-free sugar imports as a violation of loan terms, exposing deep political ties, profiteering, and economic mismanagement.


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The development came as sugar prices officially hit Rs200 per kg for the first time in the country’s history.

In light of IMF’s objections, sources say the government is now actively reviewing its decision and is considering withdrawing the tax exemptions, particularly those granted to private sector importers.