Sugar price hike: NA panel to identify ‘beneficiaries'
The Committee also formed a sub-committee to probe the price surge, focusing on sugar exports followed by duty- and tax-free imports—measures allegedly designed to benefit certain actors.
The chairman remarked that there appeared to be a nexus among politicians, bureaucrats, and the sugar industry. Members of the Standing Committee — both from the treasury and opposition benches —supported the formation of a special panel to scrutinize the entire sugar supply chain and its beneficiaries. Relevant ministries, organizations, and departments will be summoned for this purpose.
PSMA agreed for ex-mill price of sugar at Rs165/kg, ministry says
Commerce Ministry's team headed by Additional Secretary, Salman Mufti presented updated status of previous recommendations of the Standing Committee.
During the meeting, the Ministry of Commerce presented an overview of its upcoming Trade Policy and the basis for its ambitious export target of $60 billion by 2029. The presentation was met with strong criticism, particularly from PML(N) MNA Shaista Pervaiz Malik, who questioned the feasibility of such a target in light of high energy costs and foreign exchange issues that have forced many industries to shut down.
In response to a query by MNA Khurshid Ahmed Junejo, Director General (Trade Policy) Shafiq A. Shehzad admitted that the Commerce Ministry has never achieved its export targets. However, he noted that exports have increased by approximately $5 billion annually in recent years.
He also highlighted key challenges such as limited export surplus, lack of competitiveness, and the effects of climate change. Shehzad emphasized that the government had decided to pursue an export-led growth strategy, acknowledging the risks but citing the success of other countries that had adopted similar policies.
His views were echoed by the Chief Executive of the Trade Development Authority of Pakistan (TDAP), who shared future plans to boost exports.
According to the Ministry of Commerce, Pakistan faces several hurdles in enhancing exports, including: (i) U.S. tariffs and their impact on Pakistani exports; (ii) disruptions in global trade; (iii) decline in domestic crop production (eg, cotton down 30%, maize and cotton 15.4%, rice 1.4%); (iv) slowdown in global commodity prices (eg, sesame seeds, rice), and (v) financial constraints due to limited export financing.
Addressing concerns about the US tariffs, Joint Secretary (Tariff) Muhammad Ashfaq—who was part of the recent Pakistani delegation to Washington—said that tariff issues could potentially be resolved through negotiations.
The Committee was also informed that Secretary Commerce Jawad Paul had returned from the U.S., where he had accompanied Finance Minister Senator Muhammad Aurangzeb in discussions with American trade representatives. Paul is currently briefing civil and military authorities at the Prime Minister's Office.
On the issue of car imports, the Joint Secretary (Trade Policy) clarified that while the import of new cars is allowed—with Regulatory Duty (RD) reduced by 50% on high-value vehicles and by 33% on smaller ones—the government has no plans to allow the import of five-year-old used cars. He added that the Ministry of Industries and Production is working on a new auto policy, set to take effect from July 1, 2026, which will address quality and regulatory issues.
Regarding the Trading Corporation of Pakistan (TCP), the Committee adopted recommendations of Sub-Committee headed by Khurshid Ahmed Junejo which include payments to TCP as per agreements between government entities. However, it did not support TCP's request for an exemption from the special audit of loans raised from banks, as the audit had been requested by the Finance Division.
'Since the Finance Division has demanded the special audit of TCP loans, this matter needs to be discussed with them. The Committee does not support an exemption,' said Chairman Jawed Hanif Khan.
Copyright Business Recorder, 2025
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