KP govt to spend Rs165bn on subsidies
An amount of Rs165 billion will be spent on different projects under the head of subsidy, which is Rs32 billion more than the previous year's Rs134 billion.
A subsidy of Rs36 billion will be given for Health Cards, while Rs4 billion subsidy will be provided to BRT project after an addition of Rs1 billion.
The budget documents revealed that the government is considering purchasing new buses and for this purpose Rs5 billion are allocated.
Subsidy on wheat was increased that surpassed Rs27 billion. The government proposed to allocate an amount of Rs65 billion on MTEs Hospitals. It is considering allocating Rs6 billion for public sector universities.
Copyright Business Recorder, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
20 hours ago
- Business Recorder
Lahore admin supplies sugar, launches crackdown against hoarders
LAHORE: The District Administration of Lahore supplied over 1,000 tonnes of sugar across the city to ensure provision of the commodity on affordable rates to the residents of the metropolis, while additional supplies continued to maintain a balanced supply chain. The administration's spokesperson clarified that there is no sugar shortage in Lahore and that efforts to create artificial scarcity have been thwarted. The administration also launched a crackdown against the hoarders and lawbreakers, with 27 individuals facing action, nine cases registered, 13 shops sealed, and fines totalling Rs450,000 were imposed against violations. The spokesperson emphasized that actions are based on solid evidence, ensuring no honest trader is unfairly targeted. DC Syed Musa Raza assured full support to law-abiding traders while maintaining that exploitation of the public will not be tolerated. The administration has urged residents to report any issues with sugar availability or overpricing immediately, with direct access to the Additional Deputy Commissioner General for swift resolution. All efforts are focused on providing relief to the public, with the administration reinforcing that the law applies equally to all. These measures have stabilized sugar prices and availability, directly benefiting Lahore's residents by ensuring a steady and affordable supply of this essential commodity. Meanwhile, the Pakistan Sugar Mills Association has said that all sugar mills are supplying sugar at Rs165 per kg ex-mill and the country has ample stocks of sugar till mid-November 2025. In a statement, a spokesman of PSMA said that sugar supply chain was affected due to divergent administrative measures taken by some government institutions which have somewhat been redressed and the supply of sugar is continuing. The sugar industry has previously clarified that all mills are supplying sugar to the domestic market at Rs165 per kg ex-mill. Mills are only concerned with the ex-mill prices while the retail price of sugar in the market is normally determined by market forces, which is now being controlled by the government. As per media reports, sugar is being sold at Rs200 per kg but according to sugar industry information, the commodity in most markets is available at the government-set price of Rs173 up to Rs175 per kg. The spokesperson clarified that sugar dealers are buying sugar from mills at Rs165 per kg ex-mill and instead of giving it to domestic consumers, they are giving it to industrial and commercial consumers at higher profits. Satta Mafia and Stockists are creating hurdles in the supply of sugar they purchased before the price was fixed. They are blaming sugar exports by creating the impression of an artificial shortage of sugar. Linking sugar prices to exports is completely against the facts. The government had allowed the export of sugar only in case of surplus sugar from the carry-over stock of the last two years that was available with the mills and further surplus sugar was produced in the crushing season of 2023-24. Mills had to sell sugar at a loss well below the cost of production while meeting the government's condition of Rs140 per kg. Before sugar exports, all official estimates had shown a strong possibility that the next crushing season would see a good sugarcane yield and produce more sugar, but due to global warming and climate change, sugarcane production and its sucrose level dropped, which adversely affected sugar production. In the previous crushing season, the sugar industry purchased sugarcane up to Rs700 per maund which was Rs425 per maund in the crushing season of 2023-24. This provided substantial benefits to the farmers, however, it led to the sugar industry's cost of making sugar increase significantly. There was also a manifold increase in other production costs, due to which sugar mills had to suffer continuous losses over the past several years and now 12 sugar mills are closed and up for sale. Baseless accusations of profiteering on the sugar industry are unjustified. All such issues would be resolved by deregulating the sugar sector at the earliest, just as happened in the case of rice and maize sectors. Copyright Business Recorder, 2025
Business Recorder
21 hours ago
- Business Recorder
Govt decides to deregulate sugar sector: minister
ISLAMABAD: Federal Minister for National Food Security and Research Rana Tanveer Hussain on Thursday said the government has decided to deregulate the sugar sector in a move aimed at stabilising the market. Addressing a press conference, he said that deregulation of the sugar sector includes prices, export and import. Under the deregulation, the government will not intervene in pricing, procurement, or supply mechanisms, allowing the private sector to operate freely. Dispelling rumours of sugar shortage and inflated prices, Hussain assured that sufficient sugar stock is available across the country. PSMA urges Pakistan govt to deregulate sugar industry He said that following reports of rising market prices, the government signed an agreement with sugar mills on July 14, fixing the ex-mill price at Rs165 per kg, with the retail price currently averaging Rs173 per kg. He emphasised that strict action is being taken against hoarders and profiteers attempting to create artificial shortages. 'The system is in place, and implementation is underway,' he said, adding the government has the name of some sugar mills owners on the exit control list (ECL). The minister said the country's sugarcane output for 2024–25 was initially projected at seven million metric tons, but climate-related disruptions caused a decline to 5.8 million metric tons. In response, Prime Minister Shehbaz Sharif ordered an immediate halt to sugar exports in January 2025 to safeguard domestic supply, he said. He said that by the end of the crushing season on April 30, the total available stock, including a buffer stock of 0.5 million metric tons, stood at 6.3 million metric tons—just enough to meet annual national consumption needs. Currently, the country holds about two million metric tons of sugar, sufficient to meet demand for the next three months, the minister said. Defending the government's earlier decision to allow sugar exports, Hussain said that such trade has been routine over the past decade, both in exporting surplus and importing when needed. He noted that the Sugar Advisory Board (SAB)—comprising federal ministers, secretaries, provincial representatives, and industry stakeholders—had approved exports last year based on available data. At the beginning of the previous sugar season, the country had an opening stock of 800,000 metric tons, with production reaching 6.8 million metric tons against domestic consumption of 6.3 million metric tons, creating a surplus of 1.3 million metric tons. 'Exports were allowed to protect farmers and millers,' he said, adding the market witnessed a price drop from Rs138/kg to Rs119/kg following the export decision in October 2024. He said the government has launched a crackdown against violators across the supply chain. Implementation will take some time, but the system is in place and action is underway, he said. According to Hussain, Pakistan earned $402 million by exporting 750,000 metric tons of sugar last year. To ensure domestic availability, the government also approved imports of up to 500,000 metric tons, although only 300,000 tons are expected to be brought in at an estimated cost of $150 million. 'The government remains committed to ensuring stability in the sugar sector while protecting the interests of both consumers and producers,' the minister said. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Express Tribune
'Sugar stocks ample, prices within reach'
Listen to article As a sugar crisis continues to haunt the government which has recently ordered strict monitoring of stocks at mills, the food minister on Thursday claimed that everything was in control and abundant sweetener was available in the country. This comes despite rising prices due to hoarding and profiteering, piling pressure on consumers. Earlier, the government allowed export of sugar and ignored warnings from officials that millers had faced inquiries in the past and further export may again spark a crisis. Federal Minister for National Food Security and Research Rana Tanveer Hussain emphasised that sugar was available in ample quantities and its price was within reach of the common man. Addressing a press conference, the minister said that media was portraying a serious sugar crisis and dismissed claims of sugar export first and then its import. "The reality is different except for one or two years, when sugar was exported in large quantities and then imported to meet demand," he said. The government allowed sugar export in a phased manner. At the time when the export request was made, the global market price was $750 per ton. When export was permitted, the industry agreed to set the ex-mill price at Rs140 per kg, up Rs2 from the prevailing rate. Rana Tanveer stressed that usually there was a difference of Rs8-10 per kg between ex-mill and retail prices. However, after export, the local price crashed to Rs119 per kg. During Ramazan, the minister recalled, sugar was being sold for Rs130 per kg and later the area under sugarcane cultivation increased with expected sugar production of 7 million metric tons. However, due to the impact of climate change, not just in Pakistan but globally, agricultural yields were affected. Despite an increase in the cultivated area, sugar production fell. "As soon as we learnt about the shortfall, the prime minister halted the remaining export and 40,000 tons were not exported," the minister said. He stated that this year, the country produced 6.3 million metric tons of sugar, which was sufficient to meet domestic needs. Farmers have received between Rs4,500 and Rs4,750 per ton for sugarcane. He blamed hoarders and dealers for price increase, adding that strict action was being taken against them. At present, sugar is being sold for Rs173 per kg. He also drew regional comparisons, saying sugar was priced at Rs150 per kg in India, Rs187 in Bangladesh, Rs173 in Afghanistan and Rs250 in Iran. The minister disclosed that Pakistan earned $450 million by exporting sugar at $500 per ton. "Had we exported at $750 per ton, we would have earned even more foreign exchange," he noted. Export permission was granted for 7.5 million tons, while imports were allowed up to 500,000 tons. "We are currently importing 300,000 tons and will not purchase more than that," he clarified. He assured the public that sugar stock was available in adequate quantity and there was no shortage. "Prices have been fixed, although slight variations may occur in some areas. A three-month agreement has been signed with mills, allowing a maximum increase of Rs2 per kg and setting the ex-mill price at Rs175 per kg. Fresh sugar production will soon reach the market, which will stabilise prices." Millers claim sugar sale at Rs165 Separately, the Pakistan Sugar Mills Association (PSMA) said that all mills were supplying sugar at Rs165 per kg and the country had ample stocks till mid-November. In a statement, a PSMA spokesman argued that the sugar supply chain had been affected due to divergent administrative measures taken by some government institutions, "which have somewhat been redressed and supply is continuing". Mills are only concerned with ex-mill prices, while the retail price is normally determined by market forces, which are now being controlled by the government. As per media reports, sugar is being sold for Rs200 per kg, but according to the industry information, the commodity is available in most markets at Rs173 to Rs175 per kg. The spokesperson clarified that sugar dealers were buying from mills at Rs165 per kg and instead of selling to domestic consumers, they were supplying to industrial and commercial consumers at higher profits.
