Pakistan has found itself in sugar trouble almost every year recently. The government always seems to end up exporting too much or importing too little of the crucial agricultural commodity. This time around, the former appears to be the case, with the Sugar Advisory Board approving the import of 500,000 tonnes of sugar, just months after allowing 750,000 tonnes in exports from June 2024 to January 2025. The move comes after the sugar exports from last June to this January reportedly helped fuel a sharp increase in sugar prices. Refined sugar is currently retailing between Rs175 and Rs188.7 per kg across major cities, well above the government’s official price ceiling of Rs164 per kg. However, data regarding import costs suggests that this last-ditch attempt to bring down sugar prices via imports might be futile. According to a presentation by Pakistan Sugar Mills Association (PSMA) to the Ministry of Industries and Production on June 18, 2025, the cost of imported refined sugar at Karachi Port stands at Rs153 per kg without any duties or taxes. This figure jumps up to Rs181 per kg once only the sales tax is applied and, when all applicable duties and taxes are levied, the cost soars to an eye-watering Rs249 per kg.
Not levying or reducing the taxes applicable to sugar is likely not possible, given the strict IMF conditions the country has to meet. Analysts and consumer advocates are now arguing that the government’s short-sighted policy of first allowing exports despite