PAC Grills FBR, Industry Ministry Over Ongoing Sugar Crisis

ISLAMABAD: (Staff Reporter): The Public Accounts Committee (PAC) has sought the names of sugar mill owners from the Federal Board of Revenue (FBR) in connection with the ongoing sugar crisis.

During the committee’s session, chaired by Junaid Akbar Khan, FBR officials were asked to share details of mill owners who benefited from export subsidies and tax exemptions, while the Ministry of Industries and Production was grilled over the rising sugar prices and the rationale behind sugar import and export decisions.

Committee member Riaz Fatyana alleged that the nation had been defrauded of Rs287 billion under the guise of sugar prices and that those who highlighted the issue, such as Punjab’s cane commissioner Zaman Wattoo, were sidelined.

He questioned the inconsistency in government claims, citing sugar as surplus one moment and in short supply the next.

The secretary for industries explained that the sugar industry is regulated by provincial governments, with both federal and provincial representatives part of the Sugar Advisory Board, which also includes sugar industry stakeholders. The board monitors current stock and national requirements.

The committee was informed that the crushing season runs from November 15 to March 15, and provincial governments supply stock and production estimates.

Officials added that this year, the country had a surplus of over 1.3 million metric tonnes of sugar, of which 500,000 metric tonnes were reserved for the next year.

PAC Grills FBR, Industry Ministry Over Ongoing Sugar Crisis

The federal cabinet and the Economic Coordination Committee (ECC) had allowed the export of 790,000 tonnes in three phases, resulting in over $400 million in foreign exchange earnings.

However, committee members were critical of this policy, highlighting that when sugar was exported, the local market rate was Rs143 per kilo, which has now surged to Rs173 per kilo.

A special committee under Deputy Prime Minister Ishaq Dar has since been formed to probe the price hike.

The PAC session also scrutinised an FBR-issued SRO that facilitated sugar import and tax exemptions. MNA Sanaullah Mastikhel questioned whose interests were served by the SRO, noting that even a Rs1 increase in sugar price generates Rs44 billion.

He criticised the perpetual cycle of profiteering, urging that mill owners hand over their facilities to the state if they cannot run them fairly.

Committee member Moeen Aamir Pirzada went further, accusing the sugar mafia of being embedded in successive governments. He also demanded the list of sugar mill owners who were granted export licences. Khawaja Shiraz asked specifically who the beneficiaries were.

In response, FBR officials said they would provide names upon formal instruction, prompting PAC Chairman Junaid Akbar to retort that such an order had already been issued but was ignored.

The committee concluded the session by formally directing the FBR to submit the names of sugar mill owners and directors who profited from the export and pricing decisions.