Pakistan’s sugar prices remain far above international levels, a parliamentary subcommittee learned on Tuesday.
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The National Assembly’s Standing Committee on Commerce’s subcommittee, chaired by Mirza Ikhtiar Baig, was informed that sugar in Pakistan costs Rs30 per kilogram more than in the global market.
Officials from the Federal Board of Revenue (FBR) explained that imported sugar is priced at Rs197.50 per kilogram, including 18 percent General Sales Tax (GST).
Without GST, the price stands at Rs167.50 per kilogram. Shipping charges were identified as the main reason behind the price gap.
The FBR said the government imported 220,000 metric tonnes of sugar and allowed tax exemption only for official imports after approval from the International Monetary Fund (IMF). Private traders were not granted any relief.
Officials also expressed concern that heavy rains and floods could disrupt sugarcane production, adding further pressure to domestic prices.
In a recent development, the All Pakistan Sugar Mills Association has raised the price to Rs185 per kilogram for ex-mill sugar, citing rising costs of production and new taxes on the industry. The price of sugar in the domestic retail market has crossed the Rs200 per kilogram mark for the first time in the country’s history.
