The Public Accounts Committee (PAC) on Tuesday was informed sugar mills have earned Rs. 300 billion in profits due to the ongoing price hikes of the commodity, with lawmakers asserting that it was no longer affordable for the general public.
The Auditor General of Pakistan (AGP)’s revelation drew flak from lawmakers, who criticized the government’s inconsistent sugar policies and demanded clear information on the individuals who had gained the most from the crisis.
During the meeting, Industries and Production Secretary Saif Anjum informed the PAC that the Economic Coordination Committee (ECC) had permitted the export of 5.09 million tons of sugar during 2013-2023. Of this, he said, actual exports totaled 3.927 million tons. In 2023-24, he said, the country recorded surplus sugar of 1.3 million tons, of which the incumbent government permitted the export of 790,000 tons. However, his assertion that the price of sugar had remained “stable” drew criticism, with lawmakers noting the commodity is currently selling for more than Rs. 200/kg in most parts of the country.
PAC Chairman Junaid Akbar lamented that the ebb and flow of sugar prices had become an annual occurrence, noting the government first allowed its export and then cited shortages to import it, costing both the national exchequer and the general public. He demanded the names of the owners of the mills that had profited but was informed that only the names of the directors were available. Rejecting this, the PAC demanded the full ownership records in its next meeting.
Several lawmakers accused President Asif Ali Zardari and Prime Minister Shehbaz Sharif of “protecting” sugar mill owners at the cost of citizens. PTI’s Malik Amir Dogar alleged Zardari owned the most sugar mills, followed by Jahangir Tareen and then the ruling Sharif family. Akbar said 42 families were profiting from the situation, questioning why new entrants were not permitted to establish mills.
The food secretary claimed prices would stabilize after the imports, adding a reduction in sales and other taxes would ease affordability. However, he admitted, an import duty of Rs. 80/kg would result in an inevitable price hike for imported sugar.
Criticizing the import decision, the PAC chairman noted provinces had said they had ample stocks available. Officials claimed available stocks totaled 1.9 million tons, which were sufficient until November, when the crushing season begins. The PAC said the situation merited planning to avoid further instability and warned the government the issue required full transparency over sugar mill ownership and profit beneficiaries. It also demanded the government ensure the imports do not harm farmers and that sugar is not bought from countries where it was earlier exported.
The PAC also examined a Rs. 1.95 billion supplementary grant for the Press Information Department for a flood awareness campaign. Audit officials revealed Rs. 150 million was spent on the campaign, while the rest was diverted elsewhere. The matter has been referred to a subcommittee for further investigation.