Islamabad:
Pakistan’s repetitive crises have become a reflection of the way in which the established elite interests continue to handle the economy on the pretext of politics. The latest rise in sugar prices, now beating between RS180 and RS210 per kilogram, despite official intervention claims, shows how far the state actions are removed from public well -being. What unfolds is not just mismanagement. It is a system that protects the powerful and punishes the public.
In July 2024, the federal government announced with many fanfares that it had reached an agreement with Sugar Mills on selling sugar to wholesalers in RS165 per kilo. This was framed as an important agreement. But within a few days, the mills began to violate the agreed price, repeating the offer to RS175, not RS165. Even with inflated rates, sugar remains rare in wholesale markets. In the meantime, the public continues to pay well over Rs200 per kilo in big cities such as Karachi and Lahore. This was not just a policy failure. It was the illusion of reform – an orchestrated move to divert public anger without touching the roots of the problem. And at the root there is an unpleasant fact: the sugar sector is not regulated by the government. It is effectively governed by itself.
The concentration of political and economic power is intense. The Sharif family, located at the core of today’s ruling coalition, holds important sugar mills. That the same bodies planning economic policies also control the production and pricing of sugar reveals a conflict of interests so obvious that they are no longer shocking. This coating turns politics into support and governance into a private profit tool.
Earlier this year, the government allowed sugar exports, even when the domestic stocks were under pressure. Provided, local prices have increased. Then came the loading of the 500,000 metric tonnes of sugar. A move that has been criticized by the International Monetary Fund, which challenged both the timetable and the lack of transparency.
No one explained who received import licenses, according to what conditions or how the decision was justified, while government revenue is still bleeding. What the country saw was an unexpected two -way: the profits made by exports and earn further through imports without duties. There is also an issue of price collapse when shipments arrive in November. Around the time the sugar mills will buy from growers, giving them leverage to handle market prices.
In all of this, the regulators remained silent. The Competition Committee did not issue an investigation into a possible tab. The Federal Revenue Council (FBR) has not issued checks on compliance with sugar or tax contribution. No measures have been taken against the Mills for the open breach of their agreement with the government. When institutions with legal commands refuse to act, the market ceases to be a market. Becomes a racket.
This is not new. But it has become more unstable. The previous government led by PTI also faced increased sugar prices in 2020. However, its response was significantly different. Prime Minister Imran Khan then ordered a broad research involving FIA, SecP, FBR and other organizations. The research examined accumulation, tax fraud, prices manipulation and subsidy abuse.
It is important that he did not avoid calling allies or exploring politically connected people to PTI himself as Jahangir Tareen. The research report was fully published. While reacting, it also marked a rare moment when the state supported its regulatory role in an established industrial elite. The investigation was abandoned and the charges declined when the PTI government was removed.
What we see now is the opposite. Instead of facing the sugar mafia, the current government has been aligned with it. Instead of imposing transparency, it has protected its members from control. At every step, decisions have served the interests of the few at the expense of many.
This has real human costs. Sugar is not just a good good. It is necessary for households daily and a critical contribution to small businesses. Increasing sugar prices increase food inflation, the weight that has already stretched family budgets and damaged bakeries, tea benches and street vendors across the country. When a government facilitates the price of price through the weak decisions of enforcement and preferred commercial decisions, it does not simply fail the economy. Installs his moral claim to serve people.
To correct this, Pakistan must first recognize that sugar crisis is not a temporary market. It is a symptom of a deeper structural disease: the collusion between political elites and monopoly interests. The solution begins with the cutting of these links.
Public office holders and their immediate families must be prohibited by the property or invocation of industries that are able to regulate. This principle is essential in any operating democracy. Without it, policy becomes a means of personal enrichment, not a public service.
Subsequently, regulatory institutions must be deposed and authorized. Organizations such as CCP, FBB and SECP should have independent conspiracies, professional leadership and power to publish findings without seeking ministerial approval. If sugar mills violate tax laws or pricing agreements, the public has the right to know.
Commercial policy must also be demobilized. Export and import decisions, especially for essentials such as sugar, should not be made behind closed doors. They must be based on evidence presented in parliament, and are subject to public control. Import licenses should be granted through open bids and their recipients are disclosed.
In the digital age, there is no excuse for opacity. A transparent digital control panel monitoring sugar from mills to wholesalers to retailers would find it difficult to make it more difficult for storage and speculative organizations to function unregistered. It will also enhance consumers and storage groups with real -time data.
Finally, subsidies and tax exemptions must be submitted to a strict revision. The resignation of tax exemption or the granting of an introduction without a clear, documented logic of public interest should not be granted. Otherwise, they will continue to be used as vehicles for elite enrichment.
The sugar industry has become a symbol of how deeply elite the conception is running in Pakistan. But it can also become a turning point. If the state can deal with sugar mafia – not with hollow bids but with real accountability – it can begin to rebuild public confidence and financial justice. If it cannot, the crisis will return. Prices may be immersed briefly, but speculation will continue. This is not just for sugar. This is what the system is designed to serve and who leaves behind.
The writer is a graduate of the University of British Colombia
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