TCP clarifies ECC directives on sugar price stability

The federal cabinet has clarified that the Trading Corporation of Pakistan (TCP) is not responsible for ensuring domestic sugar availability or maintaining price stability in the local market, according to official documents and a clarification issued by TCP. The confusion arose from a Business Recorder report on September 3, 2026, which suggested that the Economic Coordination Committee (ECC) had directed TCP to prevent any adverse impact on domestic sugar availability and prices due to the disposal or export of imported sugar.

TCP clarified that this impression was incorrect and that the responsibility for price stabilization of domestic food commodities lies with the Ministry of National Food Security and Research (MNFS&R), not TCP. According to the Rules of Business, 1973, the Ministry of National Food Security and Research is the authority responsible for this task.

While reviewing the summary submitted by the MNFS&R regarding the permission for the export of sugar imported by the TCP, the ECC recognized the division of responsibilities. Consequently, it removed a proposed clause in the summary that attempted to assign responsibility to TCP for ensuring that disposal or export of imported sugar would not adversely affect domestic sugar availability and prices.

The deleted sentence stated: "TCP shall also ensure that the disposal/export does not adversely affect domestic sugar availability and prices."

TCP emphasized that although the Business Recorder report mentioned the deletion of this sentence in its closing section, it did not provide sufficient explanation that the clause was removed because the responsibility for maintaining stability in the domestic market was explicitly placed with the Ministry of National Food Security and Research. The Business Recorder report inadvertently created a "very wrong perception" regarding the division of responsibilities, according to TCP.

The federal cabinet subsequently ratified the ECC's decision, officially confirming that TCP has no responsibility in terms of ensuring domestic sugar availability or price stability.