Pakistan places sugar import order to ease prices, first shipment due next month

Laborers unload bags of sugar from a delivery truck to a wholesale market in Karachi, Pakistan, on May 24, 2023. (REUTERS/File)
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Updated 02 August 2025
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Pakistan places sugar import order to ease prices, first shipment due next month

  • Sugar crises recur frequently in Pakistan amid accusations of hoarding and cartelization
  • Economists urge long-term reforms to fix systemic issues in the country’s sugar sector

ISLAMABAD: Pakistan has placed the procurement order for 200,000 metric tons of sugar from the international market, an official statement said on Saturday, adding the first shipment was expected to arrive in the beginning of next month.

The announcement came amid growing concerns over a sugar crisis that has gripped parts of the country, with prices surging to Rs200 ($0.71) per kilogram in many areas, which is well above the government’s official cap of Rs173 ($0.61). The situation occurs frequently in Pakistan amid accusations of hoarding and cartelization. It also leads to public outrage and criticism from opposition parties.

Last month, leading Pakistani economists told Arab News the crisis owed to weak regulatory enforcement and a lack of industrial transparency, both of which hamper effective market oversight.

“The final order for sugar imports has been placed,” the Ministry of National Food Security and Research said in a statement. “The first shipment of imported sugar will arrive in Pakistan in early September 2025.”

The ministry said the procurement process entered its final phase after the government floated a tender, and successfully secured a discount through international negotiations.

“The purpose of the import is to ensure the availability of sugar in the market and maintain price stability,” the statement said. “The arrival of imported sugar will help keep prices balanced in the local market and directly benefit consumers.”

However, experts warned last month such measures only offered temporary relief.

Dr. Khaqan Najeeb, Pakistan’s former finance adviser, told Arab News in a recent conversation the sugar sector’s persistent crises underscore the urgent need to move beyond “reactive firefighting” and adopt structured, technology-enabled and market-aligned regulatory frameworks.

“Addressing this challenge requires deep policy expertise and a commitment to serious, evidence-based reform,” he continued

Najeeb outlined several critical reforms for the sugar sector, including improving per-acre crop yields, deregulating the market, enforcing anti-cartel legislation, using digital tools to monitor the supply chain, and setting transparent, formula-based pricing mechanisms that ensure timely payments to farmers.

“These are not quick fixes — they demand consistent, hard work,” he added. “But after years of misaligned interventions through poorly timed exports and imports, one thing is clear: there is no easy solution, only the hard path of structural reform.”


Pakistan PM calls for faster CPEC implementation, pledges security for Chinese workers

Updated 27 February 2026
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Pakistan PM calls for faster CPEC implementation, pledges security for Chinese workers

  • Shehbaz Sharif pushes expanded cooperation in agriculture, IT and mining under CPEC phase two
  • Chinese envoy reaffirms Beijing’s support for Pakistan’s sovereignty and economic development

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday called for speeding up projects under the China-Pakistan Economic Corridor (CPEC) and pledged stronger security guarantees for Chinese workers and investments, during a meeting with China’s ambassador in Islamabad.

Sharif made the remarks as the two countries strive to launch the second phase of CPEC, a multibillion-dollar infrastructure and energy initiative launched in 2015 as part of China’s Belt and Road Initiative (BRI).

CPEC’s first phase focused largely on power generation and transport infrastructure aimed at easing Pakistan’s chronic energy shortages and improving connectivity. The second phase seeks to expand cooperation into industrial development, with an emphasis on special economic zones and export-oriented growth.

“While highlighting the importance of accelerating ongoing CPEC projects, the Prime Minister stressed on the need to enhance cooperation in agriculture and IT and mining & minerals,” said a statement circulated by the PM Office after the meeting.

“He also underscored Pakistan’s resolve to provide a secure and conducive environment for Chinese personnel, investments, and institutions in Pakistan,” it added.

Chinese nationals and projects in Pakistan have faced security threats in the past, including attacks by militant groups targeting infrastructure sites and convoys. Islamabad has repeatedly vowed to tighten security and has deployed special protection units for Chinese workers.

China is Pakistan’s closest ally in the region and a key economic partner, with CPEC widely regarded by Islamabad as central to long-term economic growth.

During the meeting, the prime minister conveyed greetings to Chinese President Xi Jinping and Premier Li Qiang, particularly on the occasion of the Chinese New Year.

China’s Ambassador to Pakistan, Jiang Zaidong, reiterated Beijing’s support for Pakistan’s sovereignty and socioeconomic development, according to the statement. Both sides also exchanged views on regional and international issues and agreed to maintain close coordination.