• Panel told recent price fluctuations yielded Rs300bn profit for mills; chairman says ‘only 42 families’ benefitted
• Officials’ reluctance to share names of mill owners with lawmakers draws rebuke
• Committee told Rs150m spent out of Rs1.95bn allocated for flood awareness campaign, rest of the money diverted
ISLAMABAD: Amid a hike in sugar price, the Public Accounts Committee was informed on Tuesday that the sugar mills have earned Rs300 billion due to recent fluctuations in the rates of the essential commodity.
The Auditor General of Pakistan made these revelations during the meeting of the apex parliamentary panel, which convened the high-stakes session to review the sugar import and export policy, rising prices, and the lack of transparency in the sugar industry.
The PAC met under the chairmanship of Junaid Akbar Khan and it was briefed by Industries and Production Secretary Saif Anjum, who stated that price regulation and relevant laws fell under provincial jurisdictions.
He revealed that from 2013 to 2023, the Economic Coordination Committee (ECC) permitted sugar exports amounting to 5.09 million metric tonnes, of which 3.927 million tonnes were actually exported. In 2023-24 alone, the country had a surplus of 1.3 million tonnes, and 790,000 tonnes were cleared for export, the secretary said, adding that the price remained “stable”.
However, the PAC members expressed serious concern, citing ground realities. Chairman Junaid Akbar Khan and other members, including Omar Ayub and Senator Fauzia Arshad, contradicted the government’s claims about the commodity.
Omar Ayub reported that sugar was selling for over Rs200 per kilogramme in many regions, while National Food Security Secretary Amir Mohyuddin maintained the national average was Rs173. According to Senator Fauzia Arshad, sugar had become both scarce and unaffordable.
‘Cycle of mismanagement’
Mr Akbar, meanwhile, slammed the cycle of mismanagement, stating, “Every year we repeat the same drama: first export (sugar), then import it.”
The PTI lawmaker questioned the lack of transparency, asking, “Who owns these sugar mills?” The committee had requested a list of owners, but the industries secretary said only directors’ names were available.
The committee rejected this explanation, demanding complete records. It warned, “No further briefings will be accepted without disclosure of owners.”
The Sugar Advisory Board (SAB) also drew flak for failing to regulate the industry effectively. “This is daylight robbery,” said MNA Khawaja Sheraz Mehmood, citing massive profiteering and poor governance. “Rs287 billion have gone into a few pockets,” claimed MNA Riaz Fatyana, while others accused the president and prime minister of allegedly protecting the profiteers.
The Federal Board of Revenue officials told the panel that a list of mills’ directors had been obtained, but the lawmakers sought full ownership transparency, leading to heated exchanges among the members.
Malik Amir Dogar named President Asif Ali Zardari, Jahangir Tareen, and the ruling Sharif family as major sugar mill stakeholders, leading to fiery arguments with fellow lawmakers Shazia Marri, Afnanullah Khan, and Bilal Mandokhail.
PAC Chairman Junaid Akbar Khan noted that only 42 families profited from this massive windfall. “Why is no one else allowed to set up sugar mills?” he questioned, pointing to the concentration of ownership and lack of competition.
PAC member Khawaja Sheraz Mehmood highlighted that sugar was currently available in India at the equivalent of Rs143/kg, much cheaper than local prices.
The food secretary responded that the reduction in sales and other taxes was intended to make sugar more affordable. However, he warned that an import duty of Rs80 per kg would naturally make imported sugar more expensive.
The PAC chairman also questioned the rationale behind importing sugar despite claims from all provinces that ample stock was available. “If there was enough stock, why was the decision made to import it?” he asked.
Regarding sugar stocks, officials claimed 1.9 million tonnes were available, which will last till November. Nonetheless, PAC members voiced concern about potential spoilage and stressed the need for careful planning ahead of the next crushing season. The government had approved the import of 300,000 tons of sugar to stabilise the supply, while pledging it would not affect farmers or involve previous export destinations.
The PAC members reiterated that the issue would not be dropped until full transparency over sugar mill ownership and profit beneficiaries was achieved. Separately, the PAC scrutinised Rs1.95 billion supplementary grant allocated to the Press Information Department for a flood awareness campaign. Audit officials revealed that only Rs150 million was spent on the campaign, while the rest was diverted elsewhere. The matter was referred to a subcommittee for investigation.
Published in Dawn, July 30th, 2025
