The Public Accounts Committee (PAC) has formally requested that the Federal Board of Revenue (FBR) provide the names of sugar mill owners. This demand comes in response to the ongoing sugar crisis plaguing the nation.
During a committee session chaired by Junaid Akbar Khan, FBR officials were pressed for details on mill owners who allegedly benefited from export subsidies and tax exemptions. Simultaneously, the Ministry of Industries and Production faced intense questioning regarding the escalating sugar prices and the rationale behind recent import and export decisions for the commodity.
Committee member Riaz Fatyana leveled serious accusations, alleging that the nation had been defrauded of Rs287 billion under the guise of fluctuating sugar prices. He claimed that individuals who highlighted this issue, such as Punjab’s cane commissioner Zaman Wattoo, were subsequently sidelined. Fatyana also questioned the government’s inconsistent claims, noting that sugar was at one point declared surplus, only to be deemed in short supply shortly thereafter.
The secretary for industries attempted to clarify that the sugar industry falls under the regulation of provincial governments. Both federal and provincial representatives, alongside sugar industry stakeholders, are part of the Sugar Advisory Board, which monitors current stock levels and national requirements. The committee was informed that the crushing season typically runs from November 15 to March 15, with provincial governments providing stock and production estimates.
Officials stated that this year, the country experienced a surplus of over 1.3 million metric tonnes of sugar, with 500,000 metric tonnes reserved for the following year. The federal cabinet and the Economic Coordination Committee (ECC) had approved the export of 790,000 tonnes in three phases, which reportedly generated over $400 million in foreign exchange earnings.
However, committee members strongly criticized this export policy. They highlighted that at the time of export, the local market rate for sugar was Rs143 per kilo, but it has since surged to Rs173 per kilo. Consequently, a special committee under Deputy Prime Minister Ishaq Dar has since been formed to investigate this significant price hike.
The PAC session also scrutinized an FBR-issued SRO that facilitated sugar import and tax exemptions. MNA Sanaullah Mastikhel questioned whose interests were served by this SRO, pointing out that even a mere Re1 increase in sugar price generates Rs44 billion. He condemned the perpetual cycle of profiteering, urging that mill owners should surrender their facilities to the state if they cannot operate them fairly.
Committee member Moeen Aamir Pirzada went further, accusing a “sugar mafia” of being deeply entrenched in successive governments. He also specifically demanded the list of sugar mill owners who were granted export licenses, with Khawaja Shiraz asking for the beneficiaries’ names.
In response, FBR officials stated they would provide the names upon formal instruction. This prompted PAC Chairman Junaid Akbar to retort that such an order had already been issued but had been ignored.
The committee concluded the session by formally directing the FBR to submit the names of all sugar mill owners and directors who profited from the export and pricing decisions.
