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ISLAMABAD: A parliamentary committee led by PTI’s Atif Khan has launched an investigation into alleged price manipulation by the sugar industry, which reportedly netted millers an extraordinary Rs 300 billion in profits within just three weeks.
The committee is seeking details from the Securities and Exchange Commission of Pakistan (SECP) on the directors of sugar mills holding at least 20% shareholding, to uncover possible political affiliations. The probe follows a report by the Auditor General highlighting the unprecedented windfall for millers during a period of price escalation.
According to initial findings, the Federal Board of Revenue (FBR) has suspended 14 officials suspected of facilitating the illegal release of sugar stocks in violation of the track-and-trace system introduced in 2021. The system requires scannable stamps on sugar bags, but officials posted at mills allegedly allowed unstamped sacks to leave the premises. Several trucks carrying such sacks have since been seized.
The inquiry also points to regulatory failures and industry defiance. Despite an agreement between the Pakistan Sugar Mills Association (PSMA) and the government — led by the Deputy Prime Minister — to cap ex-mill prices at Rs 159/kg and retail rates at Rs 164/kg, millers reportedly ignored the arrangement.
Officials from the Ministry of Industries and Production told the committee that millers and dealers took advantage of an expiring export deadline to earn an estimated $440 million, despite a precarious supply situation worsened by adverse climate conditions. The ministry reported that total sugar availability for the year was barely enough to meet domestic consumption.
In response, the Prime Minister has formed a special oversight team — including intelligence agency representatives — to monitor FBR operations. The Ministry of National Food Security maintains that current sugar stocks are sufficient until mid-November but has not ruled out limited imports to avoid artificial shortages and curb further price hikes. Industrial use accounts for nearly 70% of sugar consumption in the country.
Atif Khan said the committee intends to publicly release the names of sugar mill directors to reveal any political connections, noting that many mill owners have close ties to powerful political families.
