Pakistan to Import 500,000 Metric Tons of Sugar Amid Soaring Prices and Public Pressure
Why Is Pakistan Facing a Sugar Crisis?
Pakistan’s sugar sector entered crisis mode in mid-2025 as domestic prices spiked from PKR 140/kg before Ramadan to PKR 190/kg by July. The price hike was largely triggered by the government’s decision to export 765,734 metric tons of sugar between July 2024 and May 2025. While the move earned PKR 114 billion in export revenue, it drastically reduced domestic availability.
The Pakistan Sugar Mills Association (PSMA) insisted that current reserves of 2.8 million metric tons would last until November 2025, but the government disputed this, citing hoarding and speculative practices.
Government Response: Importing Sugar to Stabilize Prices
The Sugar Steering Committee, chaired by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, approved the import of 500,000 metric tons of refined sugar through a dual mechanism involving:
- State-run TCP (Trading Corporation of Pakistan)
- Private sector importers
The committee had also proposed importing 250,000 metric tons of raw sugar, pending cabinet approval, which would bring the total potential import to 750,000 metric tons.
Objectives of the Import Plan
| Objective | Explanation |
| Price Stabilization | Combat speculative pricing and ease inflation for consumers |
| Ensure Availability | Avoid shortages during upcoming monsoon/festive seasons |
| Counter Hoarding | Flood market to undermine hoarding and cartel-like behavior |
| Strategic Reserves | Maintain sugar buffer stock via TCP |
Key Stakeholders and Attendees
The decision followed high-level meetings in June and July 2025 attended by:
- Senator Ishaq Dar (Chair)
- Minister for National Food Security Rana Tanveer
- SAPM Tariq Bajwa
- Provincial chief secretaries
- Secretaries of Food Security and Industries
Controversy and Criticism
- Export-Import Cycle: Critics slammed the government for exporting sugar and now re-importing it at higher global prices.
- Lack of Subsidies: The ECC confirmed that no tax exemptions or subsidies will be provided for the sugar imports.
- Forex Pressure: Importing sugar amid tight forex reserves has raised concerns, especially under an IMF program.
- Policy Flip-Flops: The sugar export approvals between July–October 2024 are now widely viewed as misjudged.
Economic and Market Implications
| Factor | Effect |
| Retail Price Impact | Expected to bring prices down from PKR 190/kg to near PKR 160/kg |
| Foreign Exchange | Imports may cost millions of USD, adding pressure to reserves |
| Mill Owners’ Reaction | Sugar mills lobby opposes imports, citing profitability concerns |
| Consumer Relief | Public support for imports remains high amid inflation |
Challenges and Systemic Issues
- Weak enforcement of government-mandated sugar caps (e.g., PKR 164/kg in March 2025)
- Accusations of a “sugar mafia” benefiting from both exports and local scarcity
- FBR investigations into seven sugar mills for evading the Track and Trace system
- Need for long-term structural reforms: anti-hoarding laws, fair price enforcement, and production forecasting
Conclusion and Outlook
The import decision is a pragmatic but reactive response to a preventable crisis. While the influx of sugar may stabilize short-term supply and prices, the government must address the root causes; policy inconsistency, weak regulation, and cartelization.
Success will depend on:
- Timely delivery
- Transparent procurement
- Regulatory enforcement
Frequently Asked Questions (FAQs)
Q1: Why is Pakistan importing sugar in 2025?
A1: To stabilize domestic supply and curb high prices after excessive sugar exports created a shortage.
Q2: How much sugar will Pakistan import?
A2: 500,000 metric tons of refined sugar have been approved, with a proposal to import an additional 250,000 metric tons of raw sugar.
Q3: Who will import the sugar?
A3: Both the Trading Corporation of Pakistan (TCP) and private sector entities.
Q4: Will sugar prices drop after the import?
A4: Prices are expected to fall from PKR 190/kg toward PKR 160–164/kg, depending on implementation speed and market behavior.
Q5: Why is the decision controversial?
A5: The government had previously allowed massive sugar exports, which contributed to the shortage, and is now importing sugar at a higher cost.
Sugar Market Before vs. After Crisis
| Metric | Pre-Export Period | Post-Export (Crisis) | Expected (Post-Import) |
| Domestic Price (PKR/kg) | 140–150 | 170–190 | 160–164 |
| Exports (2024–25) | ~765,000 tons | – | – |
| Imports | 0 tons | 0 tons | 500,000–750,000 tons |
| Production Estimate | 6.8 million tons | 6.8 million tons | No change |
| Consumption Rate (Monthly) | 535,000 tons | 535,000 tons | 535,000 tons |
Summary
What happened?
Pakistan decided to import 500,000 metric tons of sugar due to soaring prices and supply shortages.
Who made the decision?
The Sugar Steering Committee, chaired by Senator Ishaq Dar (Deputy PM and Foreign Minister).
Why is sugar being imported?
To stabilize prices, ensure supply, and counter the effects of massive sugar exports allowed earlier in the fiscal year.
How will sugar be imported?
Through the state-run Trading Corporation of Pakistan (TCP) and the private sector. An additional proposal for 250,000 metric tons of raw sugar is awaiting cabinet approval.
When was the decision made?
Between June 19 and July 2, 2025, in high-level government meetings.
What are the risks?
Forex pressure, regulatory failures, and accusations of policy mismanagement and market manipulation by the sugar industry.
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