Sugar import may not help cut price

LAHORE: While the focus turns to importing sugar to stabilise supply or even reduce domestic prices, recent data regarding import costs suggests this might be a false hope, potentially leading to higher consumer burdens.

The persistent debate over sugar prices continues to stir public sentiment, particularly after federal government’s waking up to the reality of importing 0.5 million tons of refined sugar following export of commodity on wrong estimation of ample production. However, this move may be a futile exercise for controlling the skyrocketing domestic prices of sweetener in the backdrop of current dynamics of international sugar market.

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 PKR 153 per kilogram without any duties or taxes. When only sales tax is applied, this figure rises to PKR 181 per kilogram. Crucially, if all applicable duties and taxes are levied, the cost of imported sugar soars to a staggering PKR 249 per kilogram.

More worryingly, government seems incapable to provide subsidy for reduction of imported sugar prices or withdraw some of taxes given the tough conditions of IMF loan programme.

Haroon Akhtar Khan, Special Assistant to the Prime minister on Industries and Production, acknowledged that prices may remain high, saying “there is a problem as under the IMF programme no subsidies can be given and neither any duties or taxes can be slashed.”