Sugar industry seeks policy changes to unlock $5 billion export potential

The sugar industry has stated that Pakistan can generate up to $5 billion annually from sugar and ethanol exports, provided regulatory restrictions are eased and bioethanol blending policies are reinstated.

At a press conference, representatives of the Pakistan Sugar Mills Association said the country currently has a surplus of over one million tonnes of sugar, adding that delays in export approvals are resulting in financial losses and reduced foreign exchange earnings.

Industry officials said Pakistan has the capacity to produce around 12 million tonnes of sugar annually without additional investment. They estimated that exporting 6 million tonnes could generate $4 billion, while ethanol exports could contribute an additional $1 billion.

A key demand raised by the industry is the restoration of the ethanol blending policy. Officials proposed introducing a 20 percent bioethanol mix in petrol, stating that similar measures have been implemented in regional markets and could help reduce reliance on imported fuel.

They added that ethanol blending could lower petroleum import costs and provide relief to consumers, while also supporting the development of the domestic sugar and ethanol value chain.