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 stocks close at record high over current account surplus, falling bond yields

Updated 18 December 2025
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Pakistan stocks close at record high over current account surplus, falling bond yields

  • KSE-100 index gains 1,646.79 points or 0.97% to close at new high of 171,960.64 points
  • Pakistan’s central bank posted a current account surplus of $100 million in November

KARACHI: Pakistani stocks closed at an all-time high of 171,960.4 points on Thursday, with financial analysts attributing the surge to increasing investor confidence stemming from a current account surplus reported in November and a drop in government bond yields.

The benchmark KSE-100 index gained 1,646.79 points or 0.97% to close at an all-time high of 171,960.64 points on Thursday. The previous day, Pakistani stocks surged to 170,313.85 points at close of business. 

Ahsan Mehanti, chief executive officer at Arif Habib Commodities, said the optimistic mood at the stock exchange was fueled by the $100 million current account surplus reported by the central bank in November.

“Speculations ahead of year-end close and fall in government bond yields up to 70 basis points after the SBP (State Bank of Pakistan) policy easing played the catalyst role in bullish activity at PSX,” Mehanti told Arab News. 

The surplus was a welcome development for Islamabad as Pakistan’s central bank reported a $291 million deficit in October.

Topline Securities, a Pakistani brokerage firm, said in its daily market review that strong buying by local funds followed a drop in Pakistan Investment Bond (PIB) yields, which boosted investor confidence.

PIB yields are the returns on bonds or government-backed securities that pay fixed semi-annual interest, with rates influenced by market demand and SBP auctions.

“Strength in ENGRO (Engro Corporation), FFC (Fauji Fertilizer Company), UBL (United Bank Limited), LUCK (Lucky Cement) and BAHL (Bank AL Habib) underpinned positive momentum, collectively contributing 1,504 points to the index,” the brokerage firm wrote on X. 

“This upside was partly offset by declines in PIOC (Pakistan International Oil Company), DHPL (D.H. Corporation Limited) and MLCF (Millat Tractor Limited), which together subtracted 176 points.”

The sustained rise in equities comes amid improving liquidity conditions and continued investor participation, with market participants focusing on corporate earnings, sector-specific developments and broader macroeconomic signals.

Earlier on Monday, Pakistan’s central bank cut its key policy interest rate by 50 basis points to 10.5%, a move that surprised analysts and followed four consecutive policy meetings where rates were held unchanged.

The cut came despite an International Monetary Fund staff report earlier this month cautioning against premature monetary easing.

Inflation eased to 6.1% in November, remaining within the SBP’s target band, though analysts have warned that price pressures could resurface later in the fiscal year as base effects fade and food and transport costs remain volatile.