The duties of importing sugar resigned

Islamabad:

The Federal Council approved the introduction of 500,000 metric tonnes of sugar, giving up 53% of import taxes to offset the negative effects of its previous decision to allow sugar exports despite objections from the Treasury.

The Council of Ministers resigned from all the duties and taxes for the import of sugar, which has also been made by the Treasury Treasury, according to the Ministry of Finance sources.

The decision to resign from taxes with the breach of the Ministry of Finance was first drawn up during a meeting under the chairing of Deputy Prime Minister Ishaq Dar, according to ministry sources. The cabinet then examined the summary initiated by the Ministry of National Food Safety.

The Council of Ministers made the decision without discussing the matter as a regular element of the agenda and instead approved it through the circulation of the summary. The rules allow the disposal of cases through traffic.

Due to food emergency, the Federal Council of Ministers allowed 500,000 metric tonnes of sugar to stabilize local prices with immediate effect, said Rana Tanveer Hussain, Federal Minister of National Food Security and Research while speaking at Express Tribune.

Rana Tanveer said the central bank would provide the cash line to Pakistan’s trading company for importing sugar.

The growth came to the heels of the growing sugar price which, according to Pakistan, was recorded in RS196 per kilogram last week. Prices were in RS138 per kilo before sugar extraction.

Without waving taxes and duties, sugar price was estimated at RS245 per kilogram. After the exemption of these taxes, the price lands is estimated at RS153 per kilo, with the exception of goods prices.

During the last meeting of the Committee on Financial Coordination of the Council of Ministers, the Secretary of Finance had refused to resign taxes or give subsidies. This time the government did not bring the summary to the ECC and approved it immediately approved by the Federal Council.

The government’s decision to allow 765,000 metric tonnes of sugar earlier is said to be the main reason for raising prices from RS138 to RS196 per kilo. However, the Food Minister said the situation emerged after a million tonnes of low sugar production due to climate change, which influenced crop performance this year.

“The Council of Ministers examined a summary of July 4, 2025, submitted by the National Department of Food Safety and Research, which was released to introduce white crystalline sugar to ensure food safety and stabilize sugar prices and approve the proposal.”

The Council of Ministers approved the import of sugar by giving up all applicable taxes, which amount to 53%, with the exception of the provincial special expert taxes. The federal cabinet is exempt from 18% of sales tax, 3% additional sales tax, income tax by 6%, 20% of the Customs and 6% additional customs office.

Intelligence Minister Attaullah Tarar did not respond to whether the Council of Ministers approved tax exemptions.

The Ministry of Funding is worried

Sources reported that the Treasury was upset by the Council of Ministers’ decision and informed the prime minister’s office that it could influence Pakistan’s international commitments.

Pakistan has also made international commitments that it will not supply agricultural products, according to finance ministers. They have warned to the Prime Minister’s office that the implementation of the Council of Ministers’ decision can create problems to fulfill international commitments.

A minister of the Council of Ministers provided anonymity said that taxes have resigned from the food emergency, so the decision should not oppose any international commitments.

Finance Minister Muhammad Aurangzeb did not answer questions if the ministry took over the issue of tax exemptions from the prime minister’s office.

In a press statement, the Ministry of National Food Safety said that all the necessary arrangements have been completed for the sugar introduction initiative and immediate implementation is already ongoing.

The ministry stressed that the current government had earlier allowed sugar exports when there was plenty of domestic bids, proving a balanced policy to manage its market dynamics. Now, by approved sugar imports, the administration aims to keep prices stable and protect consumers from sudden hikes.

According to Pakistan’s statistics office, the country exported 765,734 metric tons of sugar between July and May of the last year, gaining RS114 billion. This marks an increase of 2,200% of sugar exports compared to the same period last year.

Export first and then the introduction decision has raised concerns about the government’s contradictory policies and the disadvantaged position imposed on consumers. After exports, domestic sugar prices hit a record of RS190 per kilogram – RS58 higher than pre -production price.

In March, the government had set the sugar price of its sugar in RS164 per kilogram – 13% higher than covering the ceiling during the export approval period – allowing Millers to enjoy unexpected profits in both local and export markets.

The government had negotiated the former prices of sugar production and retail prices with Pakistan Sugar Mills Association (PSMA), which was previously accused of cartel-like behavior by the Nation’s Antitropolic Guardian. Despite agreed prices, the government has failed to secure stable retail prices.