Islamabad: Pakistan’s sugar export has received a major boost as the federal government finalized the procedure for exporting 500,000 metric tons of sugar, following approval from the federal cabinet through circulation.
According to sources, the sugar export quota will be distributed among provinces based on this year’s actual production. Punjab will receive the largest share of 64% of the quota, while Sindh will get 30% and Khyber Pakhtunkhwa 6%. Pakistan’s sugar export will be allocated through the sugar commissioners of respective provinces within seven days of notification.
This move is expected to increase Pakistan’s sugar export significantly, boosting the country’s foreign exchange reserves.To control prices, the retail price benchmark for sugar export has been set at Rs. 145.15 per kilogram. If retail prices exceed this benchmark, the export will be cancelled immediately.
Sugar mill owners will ensure that the ex-mill price does not exceed Rs. 140 per kilogram. Pakistan’s sugar export will also depend on the global market demand and competitive pricing. The federal cabinet has tasked the Sugar Advisory Board with monitoring sugar prices regularly to ensure smooth Pakistan’s sugar export. Provincial governments have been directed to oversee sugar prices to maintain stability in the local market.
The State Bank will inform the Economic Coordination Committee (ECC) about Pakistan’s sugar export situation every 15 days.Industry experts believe this move will benefit sugar mills and farmers. However, some express concerns about potential price hikes in the domestic market. The government aims to support the sugar industry while maintaining price stability for consumers.
Notably, the federal and provincial governments will not provide any subsidy for this export. The entire process will be completed within 90 days. This is the second major approval for
sugar export, bringing the total to 7.5 lakh tons since June 2024.
The approval comes after the ECC’s decision on October 11, 2024. Earlier approvals include 100,000 metric tons on September 25 and 150,000 tons in June. With this development, sugar export is expected to reach new heights, contributing to the country’s economic growth.
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