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ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb was given a comprehensive briefing by the Competition Commission of Pakistan (CCP) on the challenges of promoting competition in the sugar sector and the causes of the recent sugar crisis. The meeting highlighted that inaccurate estimates provided by the Sugar Advisory Board (SAB) last year were the primary reason for the crisis.
According to Dr. Kabir Ahmed Sidhu, Chairman of CCP, the decision to permit sugar exports was based on these incorrect figures, which ultimately led to the country’s sugar reserves being depleted below the required levels. The SAB had failed to provide the government with accurate data on sugarcane production, available stock, and sugar production between June and October of the previous year. The briefing recommended that decision-making should not be based solely on data from the Sugar Mills Association, but instead on independent and transparent data.
Deregulating Sugar Sector
In a significant announcement, Finance Minister Muhammad Aurangzeb stated that the government would completely deregulate the sugar sector. He reiterated that a robust competition framework is crucial for protecting consumer interests, ensuring market transparency, and fostering sustained economic growth.
The meeting was attended by Advisor to the Finance Minister, Khurram Shehzad, along with Chairman CCP, Dr. Kabir Ahmed Sidhu, Registrar CCP, Shehzad Hussain, Legal Advisor, Hafiz Naeem, and Director Cartel & Trade Abuse, Mr. Salman Zafar, in addition to other senior officials.
Sugar Sector Reform Committee
Dr. Sidhu also informed the finance minister that the CCP is currently preparing detailed recommendations for the Sugar Sector Reform Committee. He provided a historical context by highlighting the causes of previous sugar crises in 2008-09, 2015-16, and 2019-20, and shared the Commission’s findings and enforcement actions against cartelization in the sector.
The Minister was also updated on the status of the CCP’s 2021 order against the sugar cartel, which was remanded by the Competition Appellate Tribunal for a rehearing. The Commission has since formulated a comprehensive strategy for its quick and efficient resolution.
Senator Aurangzeb assured the CCP of the government’s full support in expediting court proceedings for pending cases and enhancing the institution’s operational capacity. The meeting also included discussions on pending litigation, administrative and regulatory measures to stabilize the sugar market, and proposals to strengthen the CCP’s institutional capacity to promote economic efficiency and protect consumers.
