Sugar price in capital soars to Rs210 per kg
According to retailers the distributors have stopped supplying sugar to the shopkeepers even at Rs9,000 per bag of 50kg which prior to government permission to the sugar millers was selling at Rs6,000 a year ago, but after attaining export permission and successfully exporting the allowed quantity, the millers gradually started escalating sugar prices and recently in wholesale market it touched Rs9,400 mark.
The retail sugar prices after Ramadan 2025 have witnessed a sharp increase and reached from Rs135 per kg to Rs210 per kg mark an increase Rs75 per kg or 55 percent.
Shopkeepers said that for a few days, the commodity price after government action came down but consequently owing to supply shortage by the sugar millers, the stockists/distributors also stopped supply of the commodity to the retailers, as a result now prices have touched all time high even on superstores.
Business Recorder in April 2024 had mentioned the plan of the sugar industry of taking the ex-mill sugar price to Rs170 per 50 kg bag, saying that sugarcane prices have gone up from Rs350 per 40kg to Rs450. In a meeting of Sugar Advisory Board held on April 2024 'the millers argued that in 2023 sugarcane price was Rs350 per 40kg which now has reached to Rs450 per 40kg and production cost of sugar at present stands at Rs170 per kg while in retail market refined sugar was available in the range of Rs145-150 per kg which is lowest price in the world'.
The Pakistan Sugar Mills Association (PSMA) prior to attaining sugar export permission had ensured the government of devising a mechanism where by price stability of sugar will be ensured before exporting surplus stock produced in the country. As per April 2024 SAB's meeting, the provinces and PSMA would ensure smooth supply of commodity in the domestic market and the price stability till start of next crushing season. It was agreed to seek authenticated data on available sugar stocks, including expected sugar production from beet, and recommendations regarding export from provinces before taking any final decision on the export of sugar.
The representatives of PSMA informed the government officials that Pakistan at present has around 1.6 million tons of additional sugar which should be exported. The PSMA has asked the government to allow export of one million tons of refined sugar in first phase which will bring around $650-700 million foreign exchange for the country and rest of the 0.6 million tons sugar be exported in two phases in May and June 2024.
The PSMA in 2024 also informed the government that if the government did not allow sugar export it will result in the smuggling of the commodity to Iran, Afghanistan and other countries as a result the country will be deprive of the precious foreign exchange while smugglers will take advantage of the situation.
According to the officials, locally industrial sector was consuming 85 percent of the sugar while the rest 15 percent was of domestic use.
Copyright Business Recorder, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
IT minister hails Agri Stack as transformative platform
ISLAMABAD: Federal Minister for IT and Telecommunication Shaza Fatima Khawaja hailed the Agri Stack as a transformative platform for Pakistan's agriculture sector during her visit to the Land Information and Management System (LIMS) facility. Developed by LIMS as a complete digital ecosystem and e-commerce platform under the Ministry of IT and Telecom (MoITT), Agri Stack aims to modernise agriculture through real-time advisory, land intelligence, and AI-driven solutions. Accompanied by the director general of the Special Investment Facilitation Council (SIFC), the minister reviewed the live demonstration of Agri Stack, which currently serves over two million farmers. The system has already contributed to saving Rs5 billion through automated pest attack mitigation—most notably during the whitefly outbreak in 2023. DG LIMS Maj Gen Muhammad Ayub Ahsan received the delegation, while Dr Col Waqar briefed attendees on the role of LIMS in enhancing food security and transforming land management. Discussions also covered a suite of digital tools including the Pak Sar Zameen Card, a GIS/remote-sensing-based smart card enabling farmers to access land records, subsidies, and agri-advisories. The visit also spotlighted broader initiatives such as promoting tech-based job creation for youth in agriculture, smartphone distribution, improved digital connectivity, and the use of AI for crop yield prediction. A proposal to form a steering group to coordinate and support LIMS in scaling these innovations was tabled during the meeting. Minister Shaza emphasised that LIMS must be fully accessible via smart phones, enabling real-time access to land records and location tracking for users across Pakistan. She highlighted the importance of digital integration in land governance to boost transparency and ease of access. The DG SIFC noted that LIMS reflects the Whole-of-Government approach, jointly driven by the SIFC and Pakistan's Armed Forces, and reaffirmed the Council's commitment to a tech-enabled and sustainable future for the country's agricultural and environmental landscape. Copyright Business Recorder, 2025
Express Tribune
2 hours ago
- Express Tribune
Trader e-invoice deadline extended
Listen to article The government on Friday gave a seven-month extension to traders in real-time electronic transmission of sales tax receipts to the computers of the Federal Board of Revenue (FBR), accepting the impracticality of the earlier deadlines and addressing one of the four concerns of the business community. The FBR issued a new statutory regulatory order to set new deadlines by dividing the businesses into seven categories as opposed to the earlier two categories. The FBR notification superseded its April 2025 order and determined new deadlines to complete the registration and testing for integration of businesses' hardware and software with the FBR's computerised system. The notification stated that as against the earlier deadline to electronically transmit invoices by June 1st, the sales tax registered persons can now complete the action by December 1st, 2025. The individuals and associations of persons having over Rs100 million turnovers in the past one year will be registered by October 1st. For some, these relaxed deadlines are still overambitious due to the limited capacity of the FBR and the private integrators to provide complete online solutions for sending electronic invoices to the FBR. The integration will be done by four companies: M/s Haball Limited, Webdnworks Private Limited, EY Ford Rhodes, and Pakistan Revenue Automation Limited, which is a subsidiary of the FBR. According to the law, only a licensed integrator having a valid FBR license can configure a registered person's electronic invoicing software for real-time electronic transmission of sales tax invoices to the FBR's server. The government has set the maximum invoice charge at Rs10 per invoice or Rs1 million. Extending deadlines was one of the four demands set out by the traders for returning to normal trading hours. The other three demands are the withdrawal of arrest powers on suspicion of fraud, the end of power to include half of over Rs200,000 cash expenses in income, and calling back FBR inspectors from business premises. Any taxpayer that does not integrate by the extended deadline or contravenes any provision of this Act is liable to penal action, according to the tax laws. According to the revised notification, as against the earlier deadline of May 1st for the corporate sector to electronically transmit sales receipts, the government has now only asked the public sector companies, companies with over Rs1 billion turnover, and all importers to complete the action by September 1st. There are a total of 390,000 registered sales tax companies and persons in Pakistan. But there are only 10,000 registered companies in Pakistan that have over Rs1 billion turnovers and file and pay any sales tax. There are another 100,000 firms that have below Rs1 billion turnovers and pay any sales tax, according to the data compiled by those who are in the digital integration business. Former Member of Inland Revenue Operations FBR Dr Hamid Ateeq Sarwar told the Senate Standing Committee on Finance last month that there were 200,000 registered persons and only 60,000 pay any tax. He had also said that the International Monetary Fund (IMF) did not allow the abolition of the additional 4% sales tax being charged from unregistered persons and instead linked the removal with a one-fourth increase in the sales tax base. The supposedly punitive 4% extra tax is now a source of remaining outside the tax net, as the businesses feel comfortable paying the additional tax and then recovering it through prices instead of becoming part of the tax regime. The FBR laws and regulations require that in case of supplies by a manufacturer or importer to an unregistered distributor, the tax invoice shall contain the CNIC or NTN of such unregistered distributors. According to the revised notification, all companies excluding the public sector, importers, and those having over Rs1 billion turnover will get registered by October 1st. The companies having less than Rs1 billion turnovers are required to get registered by November 1st. The traders had also objected to the Rs10 per invoice cost. Sources said that the government had considered giving subsidies, which were estimated in the range of Rs40 billion to Rs60 billion. The second option was PRAL, which can provide a free-of-cost service. Electronic invoicing is mandatory for all businesses. A registered person is required to install the electronic invoicing system through a licensed integrator.
Business Recorder
4 hours ago
- Business Recorder
Pakistan, US deepen ties on crypto collaboration
ISLAMABAD: Pakistan and the United States deepen ties on crypto collaboration following landmark trade agreement, a statement issued from office of the Special Assistant to Prime Minister/Minister of State on Blockchain and Crypto. As Pakistan and the United States close one chapter of economic diplomacy with the successful conclusion of historic trade talks, a new one begins — this time in the digital realm. The 31st July's high-level meeting between Bilal Bin Saqib, Pakistan's Minister of State for Crypto and Blockchain, and Bo Hines, executive director of President Trump's Council of Advisers on Digital Assets, marked a bold new direction in US–Pakistan relations. The discussion centered on the global coordination of crypto policy and Pakistan's ambitious plans to become a regional hub for Web3 innovation. This engagement came a day after the United States unveiled its long-awaited Digital Asset Framework, a landmark blueprint for global digital asset regulation. The alignment sends a strong signal: Pakistan and the US are no longer just trading partners. They are exploring now on how they can collaborate on crypto legislation. This latest dialogue follows Bilal Bin Saqib's landmark visit to the United States in June, where he held extensive meetings with top US lawmakers, including senators Cynthia Lummis, Tim Sheehy, and Rick Scott, as well as New York City Mayor Eric Adams and Bo Hines himself. Copyright Business Recorder, 2025
