Pakistan approves export of 140,000 metric tons of sugar amid declining prices

Pakistan government on Friday granted conditional approval for the export of 40,000 metric tons of sugar to Tajikistan; and also permitted further export of 100,000 metric tons of surplus sugar.

Chairing the meeting of the Economic Coordination Committee (ECC) of the Cabinet, Finance Minister Muhammad Aurungzeb advised Ministry of Industries & Production and Trading Corporation of Pakistan (TCP) that the final form of the sale agreement be brought back to the ECC for approval after further discussions with the Tajik entity.

The meeting was informed that the sugar price was declining since July, while sufficient sugar stocks were available to meet domestic requirements up to January 2025.

After detailed discussions and deliberations, the ECC approved the export in line with the terms and conditions already decided by the ECC in its meeting on 13 June 2024.

Moreover, the ECC approved funds amounting to PKR 456.6 million, which will be released as Grant-in-Aid to the Interior Division for onward disbursement to HQ FC (South) in D.I. Khan for construction of eight women facilities in tribal districts.

Finance Minister informed the meeting the IT exports had stabilized at about $300 million monthly lauded a steady growth in the Roshan Digital Accounts (RDAs) with $165 million dollars inflows received last month.

Minister said with softer oil prices, stable rupee and an aggressive monetary easing, the current account situation would continue to improve, while inflation would also recede.

Talking about the T-Bills auction, minister said the government would only borrow at its own terms.

He urged the banking system to focus on lending to the private sector. He said the 450bps cut in policy rate and the resultant ease in borrowing would help the government reduce its single largest expenditure of debt servicing, and create room for the banking sector to step up and lend aggressively to the private sector.

Referring to IMF Board meeting, Muhamamd Aurangzeb assured there would be good news on September 25.