The Economic Coordination Committee (ECC) of the Cabinet has discussed the potential deregulation of Pakistan’s entire sugar sector to address price hikes and avoid controversies surrounding the commodity. This issue was raised during the ECC meeting on April 7, 2025, chaired by Finance Minister Senator Muhammad Aurangzeb, Business Recorder reported, citing sources.Â
The ECC deliberated on several aspects of the sugar industry, including sugarcane, crop zoning, storage, and both the import and export of sugar. During the discussions, it was suggested that deregulation of the entire sector should be considered, rather than implementing piecemeal solutions that may prove ineffective.
The committee stressed the need for a thorough assessment of how deregulation would affect local storage, as well as the demand and supply of sugar. The Ministry of National Food Security and Research has been instructed to prepare a comprehensive report, similar to the one being planned for wheat, that evaluates the full value chain of the sugar sector.
On Wednesday, the Federal Board of Revenue (FBR) has set a minimum ex-mill value for white crystalline sugar starting April 1, 2025, for sales tax assessments. According to SRO 577(I)/2025, the new minimum value is approximately Rs153 per kilogram. This supersedes the previous SRO 1027(I) 2021, which had set the ex-mill value at Rs72.22 per kilogram.
The new SRO bases the minimum value on the average national retail price of refined sugar, as reported by the Pakistan Bureau of Statistics (PBS) in its weekly sensitive price indicator, adjusted by Rs16 for each fortnight starting on the 1st and 16th of the month.
