Pakistan Tenders 1.08 Lakh Tonnes of Imported Sugar Amid Policy Criticism

Pakistan’s decision to put 1.08 lakh tonnes of imported sugar up for international tender has reignited criticism of a policy that repeatedly swings between exports and imports, due to poor planning of administration, a new report has said. The report from Morocco-based publication Assahifa said Pakistan exports when authorities believe supplies are sufficient, only for the government to import sugar when domestic prices rise, or shortages emerge. The industry has been widely believed to be dominated by “cartels”, amid allegations of price-fixing and coordinated control over supplies, the report said.

Pakistan officials defended the recent move of tendering imported sugar as a way to recover costs before stocks spoil. The recent decision for international tender of sugar "has once again exposed the contradictions surrounding the country’s sugar policy, after the government found itself holding stocks it had imported to address a domestic shortage,” the report said. The Economic Coordination Committee approved the tender for the remaining sugar from the 3 lakh tonnes imported last year.

The publication cited an Express Tribune report saying the government allowed the export of 7.9 lakh in 2025 before subsequently approving the import of up to 5 lakh tonnes, of which 3 lakh tonnes were actually imported. Nearly 1.08 lakh tonnes of imported stock remain with the state-run Trading Corporation of Pakistan (TCP). Officials told the cabinet that only around 1.92 lakh tonnes of the imported sugar had been sold domestically, leaving the remainder in government warehouses, and argued that exporting the stock would help recover import and carrying costs.

However, the repeated import‑export swings have led to reluctance of finance minister to greenlight further exports as past cycles imposed costs on the public and created political fallout. "The Economic Coordination Committee had flagged weaknesses in government demand-and-supply projections, saying inaccurate forecasts had contributed to repeated import-export cycles and imposed economic costs," the report said. Further, Pakistan’s Competition Commission had flagged sugar mills engaging in price-fixing and supply control through coordinated actions facilitated by the Pakistan Sugar Mills Association (PSMA).

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