Islamabad, July 8, 2025: The federal cabinet has granted final approval for the import of 500,000 tonnes of sugar through the public sector in a bid to stabilise surging domestic prices, the Ministry of National Food Security announced on Tuesday.
In an official statement, the ministry said all logistical and administrative arrangements for the import have been completed, and the implementation process is already underway. The move is aimed at addressing market volatility and preventing further price hikes.
“This time, the strategy is more transparent and effective than in previous years,” the ministry said, adding that the current decision is based on actual market needs rather than artificial shortages created to justify subsidies, as seen in the past.
The ministry acknowledged that the earlier decision to allow sugar exports was taken when domestic stock levels were high. However, with recent price surges, reversing that policy has become necessary to restore market balance.
Retail sugar prices have spiked significantly in recent months. From an ex-mill rate of Rs125–130 per kilogram in December 2024, prices have climbed to Rs190–200 per kilogram in major markets. In Lahore, prices rose by Rs6 per kg in the latest wave, reaching Rs190, while Quetta followed with a Rs5 increase. Karachi is currently reporting the highest rates, with sugar selling for up to Rs200 per kg.
Traders had earlier assured the government that prices would remain stable following the export permission and maintained that imports would not be needed in 2025. However, these assurances failed to materialise, pushing the government to intervene amid mounting inflationary pressure.
Last month, the Sugar Advisory Board — chaired by Federal Minister for National Food Security Rana Tanveer Hussain — approved the import plan, only months after allowing the export of 750,000 tonnes of sugar between June 2024 and January 2025.
Commenting on the crisis, Minister Hussain said, “Disruptions in the supply chain and non-compliance by sugar mill owners have created market instability. The surge in sugar prices is directly impacting household budgets and escalating the cost of various food products, placing a heavy burden on ordinary citizens.”
However, the timing of the import decision has sparked criticism. Economists and consumer rights groups have questioned the government’s policy flip-flop — first enabling exports despite signs of tightening supply, and now reversing course under fiscal strain and public pressure.
