Can Someone Explain Why Govt Buys Expensive Sugar to Sell It Cheaper?

The government’s recent decision to export sugar and then re-import it at a lower price has raised questions about the government’s financial decision-making. Information Minister Attaullah Tarar’s explanation that the sugar was exported due to surplus stocks and imported due to lower production does not satisfactorily address the issue.

Former Finance Minister Miftah Ismail argues that the decision to import sugar through the Trading Corporation of Pakistan (TCP) at a higher price than the international market, and then re-exporting it at a lower price, results in a loss for Pakistan. The government has pointed to the Rs. 60 billion in sales tax collected from the sugar industry as evidence of successful enforcement, but this does not necessarily prove that consumer prices were protected.

Miftah Ismail demands transparency and a breakdown of the complete chain of transactions, including the purchase price from TCP, the international benchmark, the domestic selling price, the re-export price, and the overall impact on foreign exchange. Until the government provides this information, the controversy surrounding the sugar policy remains unresolved.