Pakistan’s sugar price is currently Rs30 per kilogram higher than the global market rate, officials informed a parliamentary subcommittee on trade. The disclosure came during a session of the National Assembly’s Standing Committee on Commerce subcommittee, chaired by Convener Mirza Ikhtiar Baig, held to review the domestic sugar pricing structure and import policies.
According to the Federal Board of Revenue (FBR), the cost of imported sugar in Pakistan currently stands at Rs197.50 per kilogram, which includes 18 percent General Sales Tax (GST). Excluding GST, the price of sugar comes to Rs167.50 per kilogram.
FBR officials explained that shipping charges and other import-related costs significantly contribute to the higher local prices compared to international market rates.
During the briefing, the committee learned that the government has granted a tax exemption on sugar imports, but this applies only at the official level and was approved following permission from the International Monetary Fund (IMF).
No such tax relief has been provided to the private sector, which continues to face higher costs when importing sugar. This discrepancy has contributed to the overall price difference and has implications for domestic availability and affordability.
The FBR also shared that the government has imported a total of 220,000 metric tonnes of sugar to stabilize the domestic market.
However, officials warned that the recent rains and flooding in various parts of the country could adversely affect sugarcane production. This development may further pressure the sugar supply chain, potentially keeping prices elevated in the coming months.
The subcommittee emphasized the need to closely monitor import policies, taxation, and production challenges to ensure that sugar remains accessible and reasonably priced for consumers. It also highlighted the importance of coordination between the government and private sector to maintain a stable supply and prevent artificial inflation of prices.
The committee concluded that effective measures are required to balance import costs, local production, and taxation policies, ensuring domestic sugar prices align more closely with global market trends while protecting consumer interests.
