Pakistan's federal, provincial government at loggerheads over sugar export

The Pakistani federal government and the provincial government of the Khyber Pakhtunkhwa government are at loggerheads over sugar export, sources informed Nukta on Monday.

The matter was discussed in detail during a meeting of Pakistan's top economic decision making body — the Economic Coordination Committee (ECC) — in Islamabad.

The sources said that the Ministry of Industries and Production, on the direction of Peshawar High Court, brought up the issue of exporting sugar from the province.

Ministry officials emphasized that based on national data, sugar production in Khyber Pakhtunkhwa is less than the province's annual consumption of 0.979 million metric tons. The local deficit is usually met by sugar supplied from surplus-producing provinces such as Punjab and Sindh. Therefore, no sugar shortage is expected in Khyber Pakhtunkhwa, even with the current and any future exports allowed by the ECC.

However, the province's chief secretary insisted that Khyber Pakhtunkhwa is a "sugar-deficit province" and cannot allow export of sugar. He also informed the ECC that he would discuss the matter with the provincial government and convey its response.
The ECC reiterated its earlier decision based on the provided national figures. However, the request and suggestions from the province of Khyber Pakhtunkhwa were duly noted.

Other matters

Separately, the Ministry of Information & Broadcasting presented a summary requesting a technical supplementary grant of PKR 95.822 million to settle the outstanding dues related to the 23rd Shanghai Cooperation Organization's (SCO) Council of Heads of Government meeting.

After deliberation, the ECC directed the ministry to re-appropriate the funds from its allocated budget for the fiscal year 2024-25 (FY25). In case of a shortfall of funds at the end of the fiscal year, the Finance Division will allocate a technical supplementary grant as needed.

Meanwhile, the Ministry of Law and Justice presented a summary for the surrender of PKR 151.787 million from the Ministry of Housing and Works, to be transferred to the Supreme Court of Pakistan for the repair and maintenance of its buildings. The ECC approved the transfer of these funds through a technical supplementary grant for FY25.

A summary from the Ministry of Energy (Petroleum Division) was also presented, seeking approval for the Sale Purchase Agreement for the supply of petroleum products between Pakistan State Oil and SOCAR Azerbaijan. The ECC approved the signing of the SPA.

The Ministry of Interior requested a TSG request amounting to PKR 650.35 million to cover costs related to the SCO Summit 2024, repairs of Safe City cameras damaged during violent protests, and maintaining law and order in Islamabad. The ECC directed the ministry to re-appropriate the funds from its allocated budget for FY25.

In another matter, the Ministry of Interior presented a summary seeking PKR 2.70 billion spent on arrangements and beautification of Islamabad for the 23rd SCO Summit. Following detailed discussions, the ECC decided that the Capital Development Authority and the Ministry of Interior should get a third-party cost and expenditure verification before bringing the summary back for further consideration.

At the end of the meeting, the ECC also reviewed the situation of price hikes in pulses and chicken. The ECC showed concern upon the situation and asked the National Price Monitoring Committee to monitor the situation in consultation with the Ministry of National Food Security and Research and provincial administration to provide relief to the common man at the earliest.

Moreover, the ECC decided to keep reviewing the prices of essential food items in order to ensure that the benefits of decline in inflation may reach the common man.