Amid soaring sugar prices during Ramadan, Prime Minister Shehbaz Sharif has called for an urgent meeting to stabilize the cost of sugar across Pakistan.
The meeting, which aims to address the increasing prices of the essential commodity, comes as the government prepares for a crackdown on tax evasion in the sugar industry, sources confirmed on Wednesday.
According to reports, the government is focusing on addressing issues related to counterfeit track-and-trace systems in the sugar sector, a key mechanism used to monitor the production and distribution of sugar. Authorities are also planning action against the reuse of tracking codes on sugar bags, a practice that has led to considerable revenue loss.
Despite having enough sugar stocks to last until October, with production reaching 5.3 million tonnes of sugar from 56 million tonnes of sugarcane crushed by February, the prices have continued to rise. Sources noted that mills currently hold between 4 to 4.5 million tonnes in reserves, and yet, prices have remained volatile, causing concern among both consumers and authorities.
Pakistan's previous sugar stock was recorded at 950,000 tonnes, further highlighting the significant increase in reserves. However, the ongoing price hike is seen as an issue of concern as it continues to impact the budget of ordinary citizens, especially during the holy month of Ramadan when sugar consumption tends to rise.
The planned crackdown aims to hold accountable those who evade taxes and engage in fraudulent practices that contribute to price manipulation. This action is expected to bring stability to the sugar market and restore fairness in the industry, which has faced growing scrutiny due to price fluctuations and reported irregularities.
With sufficient stock available, the government’s priority is to ensure that sugar prices remain stable and accessible to consumers across the country. The outcome of these efforts will be closely watched as authorities seek to curb rising inflation and ensure better regulation in the sector.
