ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday directed the Federal Board of Revenue (FBR) to submit the names of sugar mill owners who benefited from export subsidies and tax exemptions, amid rising concerns over soaring sugar prices.
Chaired by Junaid Akbar Khan, the PAC session intensely questioned the Ministry of Industries and Production on the rationale behind sugar import and export policies. Committee member Riaz Fatyana accused parties of defrauding the nation of Rs287 billion through sugar pricing manipulations and criticized sidelining of whistleblowers like Punjab’s cane commissioner Zaman Wattoo.
Officials clarified that sugar production is regulated provincially, with the Sugar Advisory Board—comprising federal and provincial officials and industry stakeholders—monitoring stock and demand. This year, Pakistan reported a surplus of over 1.3 million metric tonnes of sugar, with 500,000 tonnes reserved for the next year.
Despite the surplus, the federal cabinet approved exports of 790,000 tonnes in three phases, generating over $400 million in foreign exchange. However, committee members slammed the policy, noting sugar prices jumped from Rs143 to Rs173 per kilo domestically after exports.
The PAC also scrutinized an FBR-issued SRO that facilitated sugar imports and tax exemptions. MNA Sanaullah Mastikhel questioned who truly benefited from the SRO, warning of a Rs44 billion revenue loss from just a Rs1 sugar price increase.
Committee member Moeen Aamir Pirzada labeled the sugar mafia as entrenched in successive governments and demanded disclosure of mill owners who secured export licenses. FBR officials promised to provide the list but had previously ignored orders, prompting PAC chairman to reiterate the directive.
The session ended with a formal order for FBR to submit names of sugar mill owners and directors profiting from the policies.
