ISLAMABAD: The Ministry of Commerce (MoC) is reluctant to support the export of “surplus” sugar, citing last years’ experience when sugar was first exported and subsequently imported, triggering a controversy that drew scrutiny of government officials, including those of the Commerce Ministry and Federal Board of Revenue (FBR).
The issue of surplus sugar, as claimed by the Pakistan Sugar Mills Association (PSMA), came under brief discussion at a meeting of the National Assembly Standing Committee on Commerce held on August 12, 2026. Committee member Tahira Aurangzeb sought a clear response from Commerce Secretary Jawad Paul regarding PSMA’s demand that the government allow the export of surplus sugar.
READ ALSO: PSMA seeks permission for surplus sugar export
“There is no proposal under consideration to allow export of sugar at this point in time,” the Commerce Secretary told the committee, adding that it would be apprised if any such proposal was put forward.
Last year, the government, with the approval of the International Monetary Fund (IMF), reduced taxes and duties on imported sugar to keep its price at par with the domestic market. Sugar prices in the domestic market subsequently surged following the export of the commodity, putting the government under considerable pressure and triggering controversy over the decision-making process.
Chairman Standing Committee on Commerce Jawed Hanif Khan made it clear that the committee would again take action, as it had done in the past, if the government allowed sugar exports.
Last year, the committee chairman constituted a sub-committee to investigate whether there had been any manipulation in first allowing sugar exports and subsequently permitting imports, which contributed to an increase in sugar prices in the country.
In a recent letter to various federal ministries, the PSMA referred to its July 28, 2026 letter, in which it had provided figures on available sugar stocks and requested permission to export the surplus.
According to the PSMA, the latest stock position as of July 31, 2026 shows that 3.171 million tonnes (MMT) of sugar were available in the country. Based on the running monthly average consumption of 564,196 tonnes, it estimated that 1.974 MMT would be required to meet domestic requirements for the remaining three and a half months up to November 15, 2026.
This, according to the association, would leave a surplus of 1.197 MMT at the start of the next crushing season. It further contended that another record sugarcane crop was expected during the 2026-27 crushing season, which could result in higher sugar production compared with 2025-26. The PSMA has estimated sugar production for 2026-27 at more than 8.0 MMT.
Keeping in view the availability of surplus stocks, the PSMA has requested the government to immediately allow the export of 633,000 tonnes of sugar. It has proposed that another 564,000 tonnes be retained as one month’s strategic reserve and subsequently allowed for export within one month of the commencement of the 2026-27 crushing season.
A senior official of the Ministry of Commerce told Business Recorder that there was currently no proposal under consideration by the ministry to allow sugar exports. He said the matter was being dealt with by a committee headed by Deputy Prime Minister/ Foreign Minister, Senator Ishaq Dar.
Copyright Business Recorder, 2026