PAC Questions Govt Role in Sugar Crisis, Demands Names Behind 7.5m Ton Export

Nadeem Tanoli

Islamabad: The powerful Public Accounts Committee (PAC) has come down hard on Pakistan’s influential sugar industry, accusing it of cartelization, policy manipulation, and creating artificial shortages that have led to a severe supply crisis.

The PAC has now pushed for the urgent import of 300,000 tons of sugar to offset a production shortfall and the complete absence of a buffer stock.

The blistering remarks came during a high-level PAC meeting chaired by MNA Junaid Akbar Khan, where the Secretary of National Food Security revealed that although the area under sugarcane cultivation had increased, overall sugar production had declined compared to the previous year.

Out of 82 registered sugar mills, only 79 operated in the latest crushing season — leading to a zero buffer stock and forcing the ministry to plan the import of 500,000 tons, of which 300,000 tons are currently being pursued.

In a scathing critique, PAC member Riaz Fatyana said the government had enabled a “massive sugar cartel,” questioning who authorized the export of 7.5 million metric tons of sugar — a move that triggered domestic price hikes.

He pointed to a Federal Board of Revenue (FBR) notification that reduced sales tax on imported sugar, saying this encouraged profiteering. “The motive behind exports was simple: to create a shortage and inflate local prices,” he added.

PAC Chairman Junaid Akbar Khan called the situation a “drama,” accusing millers of exporting sugar, dumping it near borders, and re-importing it at inflated rates. “These mill owners are protected by every ruling coalition. Why do we keep oppressing the public? Why does the IMF never question these elite cartels?” he asked.

Other PAC members echoed similar concerns. MNA Naveed Qamar acknowledged that while price control may not be the state’s role, the market was clearly manipulated by powerful sugar and fertilizer cartels. MNA Shazia Marri demanded full disclosure of government subsidies issued to sugar mills over the last five years and identification of the biggest recipients.

MNA Sanaullah Khan Masti Khel condemned the government for heavily taxing basic food items while millions struggle to afford two meals a day. “We tax roti, we tax sugar, and yet we subsidize billionaires,” he remarked.

The role of the Sugar Advisory Board also came under scrutiny. MNA Moin Amir Pirzada criticized the Board’s composition, calling it non-transparent and monopolistic. “Open up the sector. Let anyone set up a sugar mill,” he urged, emphasizing that excessive government intervention is distorting the market. “The more we regulate, the more manipulation we enable,” he warned.

The PAC has called for a comprehensive follow-up in its next session. The committee has demanded full disclosure of:

Who allowed the initial sugar exports

Who was responsible for its re-import

Who benefitted from the artificial shortage and policy decisions

The revelations have reignited concerns over elite capture of Pakistan’s economy and lack of accountability in key commodity markets — with the public once again bearing the brunt of mismanagement and profiteering.