A parliamentary subcommittee on trade was informed that the price of sugar in Pakistan is Rs30 per kilogram higher than the rate in the international market. The disclosure was made on Tuesday during a session of the National Assembly’s Standing Committee on Commerce’s subcommittee, chaired by its convener, Mirza Ikhtiar Baig.
Officials from the Federal Board of Revenue (FBR) briefed the committee on the current pricing of imported sugar. According to the FBR, the cost of imported sugar in Pakistan is Rs197.50 per kilogram, which includes an 18 percent General Sales Tax (GST). Without GST, the domestic price is Rs167.50 per kilogram. FBR officials attributed the price difference to shipping charges, which significantly increase the local price compared to the global rate.
The committee learned that the government has granted a tax exemption on sugar imports only at the official level, following permission from the International Monetary Fund (IMF). No such exemption has been extended to the private sector. The FBR confirmed that the government has so far imported 220,000 metric tonnes of sugar. Furthermore, the FBR also raised concerns that recent rains and flooding may negatively affect sugarcane production.
