ISLAMABAD: The government is going to initiate legal action against Pakistan’s major sugar mills after Eid Al-Fitr, officials said on Thursday.
“With the approval of the prime minister, we will initiate criminal proceedings against them after Eid,” Shehzad Akbar, Prime Minister Imran Khan’s aide on accountability, said at press conference held to present the findings of the Sugar Forensic Commission, which investigated a sugar crisis that gripped the country earlier this year.
“Sugar mill owners have cheated farmers and evaded taxes, as the relevant state institutions failed to check them,” Akbar said, while sharing the main points of the commission’s report.
The commission’s investigators audited six major sugar groups which hold 51 percent of Pakistan’s production to examine how they were exploiting farmers, tricking the state and selling their commodity at exorbitant rates in the local market.
“A process of reforms will be initiated in relevant institutions along with devising a mechanism to see as to how we can make recoveries (from the mills’ owners),” Akbar said.
“In 2017-18, sugar mills determined the cost of production at Rs51 per kilo whereas the report gave an estimate of Rs38 instead,” Akbar said, “In 2018-19, sugar mills calculated cost price at Rs52.60 while the report gave an estimate of Rs40.”
According to the report, the mills have “for years” under invoiced sales and kept “double account books” to evade taxes.
Akbar said the sugar commission has named a number of influential people who, according to its findings, benefited from sugar export subsidies and profited from the commodity’s rising prices in the local market. On its list are: the prime minister’s close aide and former secretary general of the ruling Pakistan Tehreek-e-Insaf (PTI), Jahangir Khan Tareen; lawmaker Moonis Elahi from Pakistan Muslim League Quaid (PML-Q); son of the opposition leader Shehbaz Sharif; and brother of Economic Affairs Minister Khusro Bakhtiar.
The sugar mills, Akbar said, also exploited the farmers by using informal receipts.
“It was ultimately the farmer who was crushed because there was no official record. The mill owners showed the price of production as more than the support price which meant that farmers earned less.”
Sugar cane is a popular crop in Pakistan for which the government sets procurement prices. The industry is further protected by a 40 percent import tariff.
Government to initiate legal action against sugar tycoons after Eid
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Government to initiate legal action against sugar tycoons after Eid
- Investigators audited six groups which hold 51 percent of Pakistan’s sugar production
- Report says the mills have ‘for years’ underinvoiced sales and kept ‘double account books’ to evade taxes
Pakistan reviews austerity measures amid Middle East crisis, urges strict nationwide implementation
- Deputy Prime Minister Ishaq Dar chairs review meeting of austerity steps
- Officials briefed on salary cuts, school closures, four‑day week, petrol conservation
ISLAMABAD: Pakistan’s government on Wednesday assessed progress on a sweeping set of austerity measures introduced to mitigate the country’s economic strain from sharply rising global oil prices and supply disruptions linked to the ongoing war in the Middle East.
Prime Minister Shehbaz Sharif this week announced a series of austerity steps, including a four‑day work week for government offices, requiring 50 percent of staff to work from home, cutting fuel allowances for official vehicles by half, grounding up to 60 percent of the government fleet and closing all schools for two weeks to conserve fuel amid the global oil crisis.
The measures were unveiled in response to global oil market volatility triggered by the conflict involving the United States, Israel and Iran, which has disrupted supply routes such as the Strait of Hormuz and pushed crude prices sharply higher, straining Pakistan’s heavily import‑dependent energy sector.
“The meeting stressed the importance of strict and transparent adherence to the austerity measures, promoting fiscal responsibility and prudent use of public resources,” Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said in a statement.
He was chairing a meeting of the Committee for Monitoring and Implementation of Conservation and Additional Austerity Measures, constituted under the directions of the PM, bringing together federal and provincial officials to review execution of the broad cost‑cutting plan.
Dar emphasized the government’s commitment to enforcing the PM’s austerity steps nationwide. The committee’s review also covered reductions in departmental expenditure, deductions from salaries of senior officials earning over Rs. 300,000 ($1,120), and coordination with provincial administrations to ensure uniform implementation of the plan.
Participants at the meeting reiterated that all ministries and divisions must continue strict monitoring and reporting, with transparent oversight mechanisms, as Pakistan navigates the economic pressures from the prolonged Middle East crisis and its fallout on global energy and trade markets.
