ISLAMABAD: The government on Tuesday pinned the blame for Pakistan’s soaring sugar prices on climate change rather than mismanagement or profiteering.
Special Assistant to the Prime Minister Haroon Akhtar told reporters that a 20 percent decline in sugarcane yield, caused by adverse weather conditions, had resulted in a shortfall of 1.4 million tonnes in production. “The current sugar price hike is not because of mills; the real cause is climate change,” he said. He also defended the government’s decision to allow sugar exports, saying the country had enjoyed a surplus of 1.5 million tonnes and held a 500,000-tonne strategic reserve before approving exports and starting crushing in November 2024.
Responding to a report by the Competition Commission of Pakistan (CCP) that accused millers of manipulating figures to secure export permissions, Akhtar pushed back strongly. “It is 100 percent incorrect, I would challenge that,” he said, adding that the earlier Rs40 billion fine imposed on millers was “flawed and politically driven.” He pointed out that a tribunal had already sent the case back, citing irregularities and lack of evidence.
Turning to the industrial sector, Akhtar announced that Pakistan Steel Mills — closed for over two decades — would finally see revival plans materialise, with a feasibility study due by the end of this month from Russian experts. The government would reposition the country’s largest steel complex as a viable industrial asset.