Pakistan to Import Sugar to Stabilize Prices Amid Shortages
The Government of Pakistan has officially opened Letters of Credit (LCs) to import 85,000 metric tons of sugar under a government-to-government agreement, aiming to address shortages and stabilize prices across the country. According to official sources, the LCs have already been communicated to banks, and shipments will arrive in phases, with the first consignment expected at Pakistani ports in the coming weeks.
This move comes as sugar prices in major cities touched nearly PKR 200 per kilogram, sparking concerns over food inflation. Authorities have assured that the imported sugar meets international quality standards and will be distributed efficiently to ensure both industrial and household demand is met without disruption. Officials also emphasized that the step is crucial in maintaining supply continuity and preventing further price hikes.
Analysts have linked the current sugar crisis to seasonal gaps in production and stockpiling, which disrupted supply in local markets. The government’s import strategy is expected to play a vital role in balancing demand and supply, curbing inflation, and ensuring food security. Authorities highlighted that distribution will be carefully managed to stabilize the market during peak times.
The decision to import sugar follows revelations by the Competition Commission of Pakistan (CCP) that previous government approvals for sugar exports were based on misreported stock data, leading to shortages in the domestic market. CCP Chairman Dr. Kabir Ahmed Sidhu briefed Finance Minister Muhammad Aurangzeb, noting that similar crises in 2008, 2015, and 2019 were also caused by restricted supply.
By taking this step, the government seeks to avoid repeating past mistakes and ensure that the sugar market remains stable in the coming months.
