The Federal Board of Revenue (FBR) has suspended 14 officials for allegedly facilitating the illegal release of sugar stocks, bypassing the track-and-trace system, and enabling large-scale profiteering. The National Assembly’s committee, chaired by PTI’s Atif Khan, was briefed on the case on Tuesday, with lawmakers informed that these officials are now under formal investigation.
The Securities and Exchange Commission of Pakistan (SECP) has been asked to provide names of sugar mill directors holding at least 20% shares, amid accusations that millers and dealers made windfall profits of Rs300 billion through price manipulation.
According to the Ministry of Industries and Production, after the sugar export deadline expired, millers and dealers raised prices, earning around $440 million from exports. Although sugarcane cultivation in 2024–25 increased by 1.11%, extreme weather and crop disease reduced yields and sucrose recovery, cutting total sugar production to 5.862 million metric tons (MMT)—one MMT less than the previous year.
With carryover stocks of 0.5 MMT, total availability stood at 6.362 MMT, barely matching domestic demand. This shortage drove early 2024 price hikes. Government negotiations with the Pakistan Sugar Mills Association (PSMA) set an ex-mill cap of Rs159 and retail price of Rs164 per kg until April 19, 2025. However, in May, millers breached the agreement and continued raising prices.
The FBR reported that several trucks carrying unstamped sugar bags were seized, and its track-and-trace system—introduced in 2021—was bypassed in collusion with mill staff. Despite reduced production, sugar sales tax collections rose from Rs65 billion last year to Rs100 billion this year.
The prime minister has ordered a special enforcement team, including intelligence agencies, to monitor compliance. Officials are considering capping sugar imports at 200,000 tons to stabilise prices, noting that current stocks can last until November 2025. The parliamentary panel has resolved to summon SECP to publicly disclose the names of major sugar mill directors and investigate possible political links.