Immediate import of 350,000 tonnes of sugar okayed

ISLAMABAD: The federal government has unveiled an immediate sugar import strategy, waiving all duties and taxes and mandating the Trading Corporation of Pakistan (TCP) to import 350,000 metric tons of sugar in two phases — a move that is expected to drain hundreds of millions of dollars from the national economy.

To this effect, the Federal Board of Revenue (FBR) also slashed sales tax on the import of 500,000 metric tons of white sugar from 18 percent to 0.25 percent and waived the 3 percent VAT, under SRO 1217(I)/2025. The move, covering TCP and private imports until Sept 30, 2025, aims to stabilise prices.

The plan was finalised on Wednesday at a high-level meeting of the Steering Committee on sugar import, chaired by Federal Minister for National Food Security and Research Rana Tanveer Hussain. The committee approved a two-pronged import schedule: a first tender for 200,000 metric tons will be issued immediately, followed by another 150,000 metric tons one week later. Notably, it was the Sugar Advisory Board headed by minister Tanveer Hussain who on June 23 approved the import of 500,000 tonnes of sugar, just months after allowing 750,000 tonnes in exports from June 2024 to January 2025. Notably, the federal cabinet on July 4 granted approval to import 500,000 tonnes of sugar. Official sources told The News that the Ministry of Commerce was kept out of the loop in both the sugar export and current import decisions.

Notably, the Pakistan Sugar Mills Association has been opposing the move, saying, “Ample stocks of sugar are available to meet the country’s demand till November 21, 2025.”

In the open market, the sugar retail price is near Rs195 to 200/kg. While as per the latest official data, the sugar average price was Rs185/kg in the week ending July 3. Last year in the same week, its price was Rs144.7.