Tarar rejects Miftah Ismail’s claims over Sugar policy, defends government’s decisions

Federal Minister for Information and Broadcasting Attaullah Tarar has rejected former finance minister Miftah Ismail’s criticism

ISLAMABAD: Federal Minister for Information and Broadcasting Attaullah Tarar has rejected former finance minister Miftah Ismail’s criticism of the government’s sugar policy, accusing him of presenting facts in a misleading manner.

The exchange between the two politicians took place on social media platform X as debate intensifies over Pakistan’s sugar exports, imports and the government’s efforts to control prices and maintain market stability.

Responding to Ismail’s comments, Tarar said sugar was exported in 2024 without any government subsidy because the country had sufficient surplus stocks at the time.

The minister argued that the government later allowed sugar imports after sugarcane production declined, saying the decision was necessary to ensure adequate supplies and prevent excessive increases in consumer prices.

Explaining the current situation, Tarar said around 100,000 tonnes of surplus sugar from the previous year’s imports was now being re-exported. He maintained that the re-export would take place only after market conditions had stabilised.

According to Tarar, the process would not negatively affect the domestic market, while both sugarcane growers and consumers would remain protected.

The information minister also highlighted the Federal Board of Revenue’s enforcement measures against the sugar industry. He claimed that these measures resulted in an additional Rs60 billion being collected from the sector.

Tarar further rejected any suggestion that the government had provided special treatment or exemptions to particular segments of the sugar industry, saying enforcement measures were implemented without exceptions.

Earlier, former finance minister Miftah Ismail presented what he described as a factual account of Pakistan’s sugar policy and left it to the public to decide whether the government’s decisions were appropriate.

In his nine-point social media thread, Ismail alleged that the government had permitted the export of around 750,000 tonnes of sugar during the previous year. He claimed that following the exports, the domestic price of sugar increased by approximately Rs50 per kilogram.

Ismail further alleged that the government subsequently directed the Trading Corporation of Pakistan (TCP) to import 300,000 tonnes of sugar, while private-sector imports were restricted.

He claimed that the TCP purchased sugar at prices as much as $40 per tonne higher than prevailing international market rates. According to Ismail, the imported sugar also received exemptions from sales tax and excise duty but remained more expensive than sugar available in Pakistan.

The former finance minister also alleged that government officials from the TCP, Intelligence Bureau and FBR were involved in efforts to sell the imported sugar to industries, chain stores and brokers at prices above the prevailing market rate.

He claimed that sugar mills were allegedly instructed not to sell supplies to potential TCP customers.

Ismail maintained that the TCP was unable to dispose of all the imported sugar and was now seeking to re-export the remaining stock to the international market.

Summarising his criticism, he questioned the policy of first exporting sugar, subsequently importing it after shortages emerged, and then exporting the surplus imported stock again.

He argued that such decisions ultimately place the financial burden on ordinary citizens.

Ismail, however, said he would not determine whether the government’s policy was right or wrong, leaving that assessment to the public.

The dispute reflects the continuing controversy surrounding Pakistan’s sugar sector, particularly the government’s approach to managing production surpluses, exports, imports and domestic prices.

While critics have questioned the sequence of policy decisions, the government maintains that its measures were aimed at balancing the interests of consumers and sugarcane growers.

Tarar has specifically rejected claims that the 2024 sugar exports were supported through subsidies, insisting that exports were permitted because of surplus production. The government also argues that subsequent imports were necessary because of lower sugarcane yields and that the latest re-export of surplus stocks can be carried out without disrupting domestic supply or prices.

The public disagreement between Tarar and Ismail has once again brought Pakistan’s sugar policy under scrutiny, with questions remaining over the financial and market impact of successive export and import decisions.