The government’s plan to import 0.5 million tons of refined sugar to stabilise domestic supply and reduce prices may fall short of expectations, according to recent data that highlights potential cost challenges. The move, following the export of sugar based on overestimated production figures, may not deliver the hoped-for relief to consumers due to the dynamics of the international sugar market.
A presentation from the Pakistan Sugar Mills Association (PSMA) to the Ministry of Industries and Production on June 18, 2025, outlined the financial realities of sugar imports. It revealed that the cost of imported refined sugar at Karachi Port is PKR 153 per kilogram without any duties or taxes. Once sales tax is applied, the price climbs to PKR 181 per kilogram. When all applicable duties and taxes are factored in, the cost surges to PKR 249 per kilogram.
Meanwhile, refined sugar continues to retail above the government’s official price of Rs168 per kilogram. According to official price monitoring data released by the Pakistan Bureau of Statistics on Friday, average rates in major cities range from Rs175 to Rs188.7.Â
The highest average sugar price was recorded in Islamabad at Rs188.7 per kg, followed by Rawalpindi at Rs186.31, and Khuzdar at Rs185. Karachi, Lahore, and Hyderabad reported relatively lower but still non-compliant prices of Rs182.84, Rs180, and Rs177.32 respectively.
Nearly all surveyed urban centres were found to be selling sugar at inflated prices, suggesting ineffective enforcement of price controls and continued strain on consumer budgets.
Given the constraints imposed by Pakistan’s ongoing IMF loan program, the government is unlikely to offer subsidies to reduce the price of imported sugar or cut taxes, further complicating efforts to control domestic prices. Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, confirmed the challenges, stating that under the IMF program, no subsidies or tax reductions can be implemented.
The situation underscores the difficulty in providing relief to consumers amid growing concerns over rising commodity prices.
On the other hand, the Karyana Merchant Association Punjab has strongly condemned the continued and devastating rise in sugar prices, attributing the crisis to the government’s complete failure to intervene.Â
The association has declared a province-wide suspension of sugar sales at all grocery stores and urged the public nationwide to boycott sugar, recommending alternatives such as jaggery (gur) and unrefined sugar (shakkar).
The association emphasized that controlling sugar prices has become “extremely difficult,” pointing out that in the open market, sugar prices have risen to Rs190 per kg in urban areas and can reach up to Rs200 per kg in suburban and rural regions.
