Pakistan waives all duties, taxes on sugar imports to curb price hikes

Labourers unload bags of sugar from a delivery truck to a wholesale market in Karachi, Pakistan May 24, 2023. (file/ REUTERS)
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Updated 09 July 2025
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Pakistan waives all duties, taxes on sugar imports to curb price hikes

  • Announcement comes as sugar prices surge to Rs200 [$0.70] per kg in several parts of Pakistan
  • Pakistan to import 350,000 tons of sugar in two phases initially, says food security ministry 

ISLAMABAD: Pakistan’s National Food Security Ministry announced on Wednesday it has decided to waive all duties and taxes on sugar imports to ensure the product is available to the public at affordable prices. 

In Pakistan, high sugar prices have triggered public outcry and become flashpoints for opposition criticism in the past, with allegations of hoarding and cartelization frequently surfacing in election years or periods of economic volatility.

The latest announcement from the ministry comes as sugar prices surge to nearly Rs200 [$0.70] per kilogram in several parts of the country, triggering public concern. National Food Security Minister Rana Tanveer Hussain chaired a meeting of the steering committee on sugar on Wednesday, which decided to import the commodity through the Trade Corporation of Pakistan (TCP) to ensure transparency and quality control. 
“To facilitate this process, the government has exempted all duties and taxes on sugar imports so that sugar can be made available to the general public at affordable prices and inflationary pressures can be eased,” the ministry said in a statement. 

It said sugar will be imported initially in two phases. In the first phase, a tender for 200,000 metric tons of sugar will be issued, followed by another tender for 150,000 metric tons after one week.

The ministry said these import quantities have been determined in line with immediate market requirements and anticipated demand in the coming weeks.

“The imported sugar will be of premium quality, meeting standard market expectations— specifically, the coarse-grain variety commonly used by consumers,” the statement said.

“Additionally, post-shipment inspection will be strictly enforced to ensure that quality standards are upheld.”

Hussain said the government would deploy a streamlined and “active system” to guarantee timely distribution of imported sugar across the country, leaving no room for hoarding or profiteering.

“He expressed hope that this strategic intervention will help stabilize sugar prices in the local market and significantly ease the financial burden on consumers,” the ministry said. 


Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

Updated 25 December 2025
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Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

  • Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
  • Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone

KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.

The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said. 

The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim. 

“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said. 

Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.

The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs. 

Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said. 

“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said. 

The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital. 

To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.