LHC steps in over Rs1.25bn JDW sugar subsidy, Finance Secretary summoned

The petition was heard by Justice Muzammal Akhtar Shabbir, who issued the direction during proceedings on Sunday as the court examined

LAHORE: The Lahore High Court (LHC) has taken up a contempt petition filed by JDW Sugar Mills, owned by former federal minister Jahangir Khan Tareen, over the alleged non-payment of Rs1.25 billion in export subsidy, directing the Secretary of the Federal Ministry of Finance to be made a party to the proceedings.

The petition was heard by Justice Muzammal Akhtar Shabbir, who issued the direction during proceedings on Sunday as the court examined the dispute surrounding the payment of the long-pending subsidy.

Representing JDW Sugar Mills, the petitioner’s counsel told the court that the company had exported sugar in 2013 after the federal government announced an export subsidy scheme to facilitate overseas shipments.

The counsel maintained that the Trade Development Authority of Pakistan (TDAP) was responsible for releasing approximately Rs1.25 billion to the mill under the subsidy arrangement. Despite an earlier court order concerning the payment, the amount had allegedly not been released, prompting the petitioner to seek contempt proceedings against the TDAP Director General.

The government’s counsel, however, disputed TDAP’s responsibility for releasing the funds. The court was informed that the relevant documentation had already been completed and forwarded to the Federal Ministry of Finance, which now has to take the necessary steps for implementation of the court’s order and release of the claimed amount.

The government lawyer further pointed out that the Ministry of Interior had not been included as a respondent in the petition.

After hearing the arguments, the Lahore High Court directed that the Finance Secretary be made a party to the case and adjourned further proceedings.

The dispute stems from an export subsidy announced by the federal government in 2013 to support sugar exports. A number of sugar mills have reportedly pursued outstanding subsidy claims linked to the scheme, keeping the matter under legal and administrative consideration for years.