According to sources, a parliamentary committee has revealed that incorrect decisions regarding sugar exports were made due to inaccurate data on sugar production and stocks provided by the Pakistan Sugar Mills Association (PSMA), as well as the failure of the Federal Board of Revenue (FBR) and provincial cane commissioners to provide timely and reliable information.
Sources said that the committee, headed by Dr. Mirza Ikhtiar Baig, was tasked with investigating the causes of the increase in sugar prices and identifying the institutions, individuals, or officials responsible for past decisions allowing sugar exports or imports.
According to reports, the committee observed that the non-functioning of the S-Track portal (Track and Trace System) halted the monitoring of sugar transportation, which led to abnormal price hikes and encouraged profiteering at the retail level. The panel further noted that the issuance of No Objection Certificates (NOCs) on selective grounds made market manipulation even easier, while excessive government regulation created opportunities for the misuse of authority.
Moreover, government engagement with the Sugar Mills Association on price determination effectively legitimized cartel-like behavior. In addition, questions were raised over the decision to import sugar, as it was taken despite the availability of ample domestic sugar stocks in the country.
Sources stated that, according to the Competition Commission of Pakistan (CCP), since its establishment it has intervened in the sugar sector multiple times through cartel identification, enforcement actions, and policy-level measures. The CCP has issued several policy notes and conducted a comprehensive study in 2018, presenting detailed recommendations. After the sugar crisis resurfaced in 2025, the CCP initiated an in-depth research process to examine its root causes.
The CCP informed the committee that it has conducted multiple investigations in the sugar sector and has imposed cumulative penalties amounting to Rs 44 billion so far. The CCP further stated that the latest investigation, launched after sugar prices rose from Rs 120 to over Rs 200 per kilogram in 2025, revealed that the continuation of the crisis is linked to decisions regarding sugar exports.
The committee recommended the following measures:
- Establishing clear and transparent parameters for sugar procurement through Pakistan.
- Introducing legal reforms to strengthen the CCP’s enforcement powers and penalty mechanisms.
- Conducting a detailed audit of sugar import decisions to assess their justification in light of available domestic stock levels.
- Standardizing and prioritizing logistics through sea routes to minimize smuggling and stabilize the supply chain.
- Taking appropriate legal action against institutions, organizations, individuals, or government officials responsible for past incorrect decisions regarding sugar exports or imports.
- Deregulating the sugar sector as the only viable and long-term solution to prevent future crises.
