ISLAMABAD: Expressing dissatisfaction with the lack of transparency and what it considered to be anti-consumer policy decisions, the Public Accounts Committee (PAC) of the National Assembly, led by MNA Junaid Akbar, questioned the rationale behind the tax exemptions granted to facilitate sugar imports and the government’s previous decision to allow sugar exports, only to later approve re-importation at much lower duty rates.
Chairman Junaid Akbar also raised concerns about whether the government had consulted the International Monetary Fund (IMF) before granting such significant relief to powerful sugar producers.
In a briefing to the committee, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial explained that four taxes had been reduced to facilitate the import of 500,000 metric tonnes of sugar. However, the committee criticised the move, suggesting the policy was designed to benefit sugar mill owners and empower cartels.
The PAC directed the FBR to provide complete records of all sugar mill owners involved in the export process and demanded answers to key questions: Who authorised the exports? Who was involved in the exports? And to which countries was the sugar sent?
The National Food Security secretary, in response, stated that the decision to import sugar was made to stabilise local prices, even though Pakistan had already produced enough sugar to meet domestic demand. He explained that exports were previously permitted to protect the interests of sugarcane farmers, but this explanation was met with scepticism by PAC members, who accused the government of manipulating the market in favour of influential lobbies.
PAC member Moeed Pirzada described the sugar industry as an unregulated monopoly. He questioned whether provincial authorities could take action against the sugar barons.
Committee member Naveed Qamar criticised the government’s ongoing market interventions, stating that cartels in the sugar and fertiliser sectors remained unregulated and unchecked, further empowering monopolies.
The committee also reviewed sugar prices across provinces, ranging from Rs177 per kg in Punjab to Rs185 in Khyber-Pakhtunkhwa.
Chairman Akbar questioned the rationale behind the policy, asking, “Was this entire exercise simply to turn a handful of sugar barons into billionaires?”
After further dissatisfaction with the responses, the committee deferred further discussion and instructed the relevant ministries to present comprehensive data on sugar importers, exporters, and the policy decisions behind these actions in the following week.
