Islamabad, July 29, 2025: The Public Accounts Committee (PAC) on Tuesday called for full transparency from the Federal Board of Revenue (FBR), demanding the names of sugar mill owners allegedly involved in profiteering, hoarding, and benefiting from controversial export subsidies, as Pakistan continues to grapple with a deepening sugar crisis.
Chaired by Junaid Akbar Khan, the committee held a detailed review of the sugar price hike and export decisions, with officials from the Ministry of Industries and Production providing a briefing on sugar regulation and export mechanisms.
PAC member Riaz Fatyana alleged that manipulated sugar pricing had caused an economic loss of Rs287 billion to the nation. He criticized the sidelining of whistleblowers, citing the removal of Punjab Cane Commissioner Zaman Wattoo as an example of administrative suppression.
Fatyana also highlighted the confusion created by conflicting government claims — swinging between sugar surpluses and shortages — and raised alarm over tax waivers through sudden statutory regulatory orders (SROs). “Who benefited from these overnight decisions?” he asked, calling for a transparent investigation.
The Secretary for Industries clarified that sugar regulation is primarily a provincial matter, though the federal Sugar Advisory Board, which includes both government and industry representatives, monitors national stock levels and demand. He noted that the crushing season runs annually from November 15 to March 15, and provinces are responsible for providing production and stock data.
Chairman PAC Junaid Akbar Khan questioned the rationale behind granting export subsidies to mill owners despite domestic price pressures. He directed the FBR and industry representatives to submit not just the names of sugar mills, but the full list of their owners and board directors.
Officials admitted that only the names of mills had been shared so far. The chairman reiterated the committee’s demand for full disclosure and accountability.
According to officials, Pakistan had a surplus of 1.3 million metric tons of sugar this year. Of this, 500,000 metric tons were set aside for next year, while 790,000 metric tons were approved for export in three phases by the federal cabinet and the Economic Coordination Committee (ECC). These exports reportedly earned over $400 million in foreign exchange.
However, the exports coincided with a surge in domestic sugar prices — from Rs143 to Rs173 per kilogram — triggering widespread public outrage. In response, Prime Minister Shehbaz Sharif has constituted a special inquiry committee led by Deputy Prime Minister Ishaq Dar to probe the matter.
PAC member Sanaullah Masti Khel raised concerns over an FBR-issued SRO related to sugar imports and warned that even a one-rupee increase in sugar price could generate windfall profits of Rs44 billion for mill owners. “The sugar mafia has manipulated this sector for decades,” he said.
Moeen Aamir Pirzada also condemned the government’s role, accusing it of enabling profiteering while burdening citizens. He called for restructuring the Sugar Advisory Board to include public representatives to improve oversight and transparency.
Khawaja Shiraz, another PAC member, demanded the immediate release of names of mill owners who benefitted from sugar exports. FBR officials said they would comply once official directives were received — prompting Chairman Junaid Akbar to remind them that such instructions had already been issued.
The PAC is expected to continue its inquiry in the coming sessions, as pressure mounts for transparency and accountability in one of Pakistan’s most influential and controversial industries.
