A National Assembly panel has been informed by the Federal Board of Revenue (FBR) that 14 FBR officials, allegedly involved in the illegal release of sugar, have been suspended and are under investigation, according to a news report.
The NA committee, led by PTI’s Atif Khan, sought the names of sugar mill directors holding at least 20% shares from the Securities and Exchange Commission of Pakistan (SECP) following reports of Rs300 billion in windfall profits generated through price manipulation with dealers.
The Additional Secretary of the Ministry of Industries and Production explained to the committee that millers and dealers manipulated prices after the expiration of the sugar export deadline, earning approximately $440 million from exports.
In the 2024-25 crop year, sugarcane cultivation increased by 1.11% compared to the previous year, but climate-related factors such as heatwaves and crop disease led to a decrease in yield and sucrose recovery, resulting in lower sugar production of 5.862 million metric tons (MMT)—1 MMT less than the previous year. Adding carryover stocks of 0.5 MMT, total sugar availability for 2024-25 was estimated at 6.362 MMT, aligning closely with domestic consumption in 2023-24. This tight supply-demand balance led to price hikes in early 2024 following the export phase.
The committee, which included the Deputy Prime Minister, held several meetings with the Pakistan Sugar Mills Association (PSMA), discussing price stability. A cap was agreed to set the ex-mill price at Rs159 per kilogram and the retail price at Rs164 per kilogram for one month until April 19, 2025. However, in May 2025, PSMA failed to comply, continuing to raise prices.
Despite warnings from the Ministry of Industries, sugar millers disregarded the ministry’s directives. FBR officials noted that a track-and-trace system for sugar stocks was introduced in November 2021, but some sugar bags were released without stamps, allegedly involving mill-deployed officials.
The FBR has since seized several trucks carrying unstamped sugar sacks, and sales tax on sugar has risen to Rs100 billion, up from Rs65 billion the previous year, despite a reduction in sugar production.
The prime minister has formed a special team, including intelligence officials, to monitor FBR operations. Officials from the Ministry of National Food Security and Research indicated that while sugar imports may be limited to 200,000 tons to avoid price hikes, current stocks are sufficient until November 2025.
The committee resolved to summon SECP officials to obtain a list of sugar mill directors with at least 20% shares and share this information with the media to investigate potential political affiliations.
The panel also decided to review the Public Accounts Committee minutes, where the Auditor General of Pakistan reported that sugar millers earned Rs300 billion in profits within just three weeks.
Next headline: 14 fbr officials exonerated.