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ISLAMABAD SPECIAL COORESPODENT
The Public Accounts Committee (PAC) expressed strong outrage over the ongoing sugar scandal during its latest meeting, grilling FBR officials over the import of 500,000 tons of sugar and unveiling massive defaults by sugar mills.
The committee, chaired by MNA Junaid Akbar Khan, uncovered that sugar mills are defaulters of billions of rupees. PAC member Riaz Fatyana criticized the lack of implementation of the Sugar Act across provinces, questioning the logic behind allowing 750,000 tons of sugar exports followed by a 500,000-ton import. “If there was no sugar shortage, who authorized the import after such a large export?” he asked.
The FBR reportedly reduced the sales tax on sugar import from 18% to 0.2% via an SRO, prompting PAC to call it a “major sugar scandal.” Junaid Akbar accused authorities of prioritizing investor interests over the public’s, stating, “When it’s about the people, you cite IMF restrictions. But when investors are involved, even the IMF is ignored.”
Members condemned the government’s handling of the sugar sector, calling for an end to new sugar mills and criticizing the failure of the Competition Commission to address sugar cartels. MNA Naveed Qamar noted that the government neither sets sugar prices effectively nor should it try to, and asked who empowered cartels to dominate the market.
PAC member Moin Amir questioned whether Sindh Chief Minister Murad Ali Shah or Punjab’s Maryam Nawaz have the authority to take action against sugar mills in their provinces. Riaz Pirzada commented, “This is the third scandal under this government – wheat, electricity, and now sugar.”
It was revealed that sugar mills defaulted on loans worth Rs. 23.3 billion from the National Bank of Pakistan. Despite a 2015 court ruling in favor of the bank, no recovery has been made. The NBP President informed that one mill has repaid its loan, three are paying in installments, negotiations with four others are ongoing, and recovery efforts are underway with the remaining 17 mills.
FBR officials clarified that food imports and exports fall under the Food Ministry’s purview. The cabinet ordered FBR to reduce customs duty and sales tax on sugar imports, which it did, lowering advance tax from 5.5% to 0.25%. The Chairman FBR questioned why the IMF had no objections to this decision.
Currently, sugar retails at Rs. 183 per kg across all provinces. Out of the approved 500,000-ton import, 300,000 tons are yet to arrive. Due to the committee’s dissatisfaction, a detailed briefing has been scheduled for the next meeting, and a list of all sugar importers and exporters has been requested.
