Pakistan’s sugar market remains under strain as domestic rates continue to exceed global prices, a parliamentary panel was informed on Tuesday.
The subcommittee of the National Assembly’s Standing Committee on Commerce, led by Mirza Ikhtiar Baig, reviewed the sugar pricing structure.
The Federal Board of Revenue (FBR) said imported sugar costs Rs197.50 per kilogram after including 18 percent General Sales Tax (GST), while the rate without GST is Rs167.50.
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Compared with the international market, this reflects an extra burden of around Rs30 per kilogram.
The FBR clarified that the government, not the private sector, received tax exemptions on sugar imports under IMF guidelines. To date, 220,000 metric tonnes of sugar have been brought into the country under this scheme.
Officials cautioned that heavy rains and floods could damage sugarcane crops, increasing the risk of supply shortages and further price hikes in the months ahead.
