Sugar mills earn Rs300 billion in windfall gains amid price fluctuations, PAC told

• JDW Sugar Mills remains top exporter with 73,090 metric tons worth Rs11.1 billion, followed by Tandlianwala Sugar Mills with 41,412 metric tons (Rs5.98 billion), Hamza Sugar Mills with 32,486 metric tons (Rs5.03 billion), and Thal Industries with 29,107 metric tons (Rs4.55 billion)

The Public Accounts Committee (PAC) on Tuesday reviewed a report revealing that 67 sugar mills exported over 746,469 tons of sugar worth $400.02 million (Rs111.97 billion) between July 2024 and June 2025. The report, presented to the PAC, highlighted significant profits for mill owners due to recent fluctuations in sugar prices, with the Auditor General of Pakistan (AGP) estimating a windfall gain of Rs300 billion for the mills.

According to a detailed report by The News, the PAC was informed that JDW Sugar Mills was the top exporter, with 73,090 metric tons worth Rs11.1 billion, followed by Tandlianwala Sugar Mills and Hamza Sugar Mills. Other major exporters included Thal Industries and Almoiz Industries. 

Tandlianwala Sugar Mills followed with 41,412 metric tons (Rs5.98 billion), and Hamza Sugar Mills exported 32,486 metric tons (Rs5.03 billion). Other significant exporters included Thal Industries Corporation Limited (29,107 metric tons, Rs4.55 billion), Almoiz Industries (29,453 metric tons, Rs4.32 billion), JK Sugar Mills (29,969 metric tons, Rs4.09 billion), Madina Sugar Mills (18,869 metric tons, Rs2.79 billion), Fatima Sugar Mills (17,365 metric tons, Rs2.68 billion), Daharki Sugar Mills (16,533 metric tons, Rs2.45 billion), Ramzan Sugar Mills (16,116 metric tons, Rs2.41 billion), Indus Sugar Mills (14,047 metric tons, Rs2.10 billion), Ashraf Sugar Mills (11,317 metric tons, Rs1.67 billion), Shakarganj Limited (7,867 metric tons, Rs1.13 billion), Unicol Limited (6,857 metric tons, Rs1.02 billion), and Habib Sugar Mills (6,253 metric tons, Rs960 million).

PAC Chairman Junaid Akbar Khan raised concerns about the contradiction between export policies and local market needs, pointing out the imbalance between domestic supply and commercial interests. He called for immediate measures to protect consumers from price manipulation and artificial shortages. 

“Why is no one else allowed to set up sugar mills?” he questioned, criticising the lack of competition in the sector.

The committee also criticised government policies for enabling mammoth profits for a few families, with only 42 benefiting from the surge in prices.

The PAC members discussed the ongoing sugar crisis, where domestic prices have surged from Rs143 to Rs173 per kilogram since the export decision was made. They noted that sugar stocks were dwindling, and remaining supplies were being sold at inflated prices. Lawmakers accused the sugar industry of exploiting consumers through recurring cycles of exports and imports.

The industries and production secretary informed the committee that Pakistan produced 7.66 million metric tons of sugar last year, with a surplus of 1.3 million tons. Of this, 500,000 metric tons were reserved for the following year, and 790,000 metric tons were approved for export in phases, generating over $400 million in foreign exchange. However, this decision led to price hikes and a shortage in the domestic market.

Further concerns were raised about subsidies granted to sugar mills for exports and allegations of price manipulation. PAC member Riaz Fatyana claimed that Rs287 billion had been defrauded due to such practices, while Moin Aamir Pirzada accused the “sugar mafia” of being entrenched in successive governments.

The industries secretary clarified that sugar regulation falls under provincial jurisdiction but stressed that both federal and provincial representatives sit on the Sugar Advisory Board. When questioned about tax exemptions and the list of sugar mill owners, the committee insisted on full transparency, including the names of owners and directors.

In response to the sugar shortage, the government plans to import 300,000 tons of sugar through open tenders, a reduction from the earlier 500,000 tons. The National Food Security secretary confirmed that Pakistan currently holds 1.9 million tons of sugar, with imports scheduled for September.

The meeting became contentious when lawmaker Malik Amir Dogar accused top political families, including Asif Ali Zardari, Jahangir Tareen, and the Sharif family, of owning the majority of sugar mills and benefiting from government policies. 

This sparked sharp reactions from other members, with PPP’s Shazia Marri challenging Dogar’s claims and PMLN’s Afnanullah Khan accusing him of selective criticism. Senator Bilal Mandokhail intervened, urging Dogar to retract his remarks.