Sugar Sector⁤ in crisis: Mismanagement, Defaults, and Hoarding Spark PAC Alarm

ISLAMABAD – Pakistan’s sugar sector⁢ is ⁢embroiled in a deepening crisis, marked by widespread ⁤mismanagement, meaningful ⁤loan defaults, and alarming irregularities involving public institutions. The Public Accounts Committee (PAC) has voiced grave concerns, demanding accountability as a nationwide crackdown on sugar hoarders intensifies.National Food⁢ Security secretary‍ Amir Mohyuddin revealed a stark reality during a recent PAC sitting: despite an ‍increased sugarcane cultivation⁢ area, overall sugar ⁤production has ‍declined. Compounding the issue, pakistan currently possesses no buffer stock of sugar, necessitating an import of 500,000 tons, with 300,000 tons ⁤already planned.

Committee members, including ‍Riaz Fatyana and Junaid Akbar, lambasted what ⁢they described ⁢as a “massive ‍sugar cartel” manipulating supply and prices. Fatyana questioned the export of 7.5 million metric tons of sugar, alleging it was a deliberate tactic⁤ to artificially inflate domestic prices. He also challenged‍ the Federal Board of Revenue (FBR) over⁢ a Statutory Regulatory Order (SRO)‍ that reduced sales⁢ tax on sugar imports, asserting, “This ⁣export was designed for profiteering.”

PAC Chairman Junaid Akbar Khan condemned the pervasive⁣ influence of “sugar barons,” ‍noting their deep entanglement with successive governments. He⁣ questioned the silence of⁣ international financial ⁤institutions on their profiteering and criticized tax exemptions granted to⁤ sugar importers⁣ while the ⁣general public received no relief. FBR officials attributed the tax exemption to a cabinet decision,⁤ stating the board acted on official instructions.

Member ⁣of the National‍ Assembly (MNA) Naveed Qamar advocated⁣ for the government to withdraw from⁣ market interventions, ‍arguing that such⁣ involvement consistently exacerbates problems. He highlighted the unchecked operation of⁣ two dominant cartels⁣ – sugar and fertilizer – stating,”Bureaucracy cannot run markets.”

MNA Shazia⁣ Marri called for a detailed report on subsidies granted ‍to sugar mills over the past five years and the identification ‍of top beneficiaries. The committee also ⁤expressed dissatisfaction with the openness and composition of ⁢the Sugar ⁢Advisory Board. ⁤The Ministry of⁤ Industries ⁢has been summoned to the next meeting ⁣to clarify decisions regarding sugar exports and imports, as the Ministry of Food Security‍ claims it lacks access ⁤to ⁤this critical ‍data.

In⁢ response to the escalating crisis, Minister for National⁣ Food Security and research⁢ Rana Tanveer Hussain issued a stern warning to sugar mills withholding ⁢existing stocks.He declared that hoarding would not be tolerated and directed provincial governments to ensure ⁣the timely lifting and smooth transportation of sugar to⁢ markets. A nationwide crackdown is currently underway ⁤against those disrupting the supply chain, with strict action promised against hoarders responsible for artificial price hikes.

A press release from the ⁢Ministry of National‍ Food⁢ Security indicated that ⁤the government’s ⁢crackdown has already led to a ⁣significant⁣ decline in sugar prices, from Rs200 ‍per kilogram to ⁤Rs175 per kilogram.

Amin Ahmed also ‍contributed to this ⁣report.