Pakistan eyes sugar imports from Central Asia amid soaring prices

Facing a looming sugar shortage and a price spiral nearing PKR 190 per kilogram, Pakistan is trying to secure imports from Central Asia through direct government-to-government (G2G) deals and is in talks with several countries, officials revealed to Nukta.

Separately, the Trading Corporation of Pakistan has also floated an international tender for 100,000 metric tons of white refined sugar.

The federal government is exploring both options to secure supplies of sugar at competitive global rates.

If negotiations with Central Asian countries are finalized, Pakistan will import sugar from the region for the first time ever, according to the officials.

Meanwhile, the Ministry of National Food Security confirmed over the weekend that a 200,000-ton sugar import deal has been finalized with the first shipment expected in early September. However, key details remain under wraps, including the subsidy involved and the final landing cost, triggering concerns about transparency in a subsidy-sensitive environment under International Monetary oversight.

An official close to the matter said the sugar import was approved by a powerful committee led by Deputy Prime Minister Ishaq Dar.

While the Prime Minister’s Office said the measure aims to "balance prices and provide relief", it offered no details.

One source said the subsidy could exceed PKR 30/kg—a red flag for the IMF—which reportedly rejected Pakistan’s "food emergency" rationale and warned that further subsidies could jeopardize the $7 billion loan program.

In a parallel crackdown, authorities claimed last Thursday to have seized 1.9 million metric tons of sugar stockpiled by private mills and placed 18 mill owners on the Exit Control List for alleged hoarding.

The Pakistan Sugar Mills Association denied any seizures, calling the claims “administrative chaos”, while Food Minister Rana Tanveer Hussain accused hoarders of artificially inflating prices.

Ironically, Pakistan exported over 757,000 tons of sugar worth $406.9 million between August 2024 and January 2025, citing surplus stocks at the time. But climate-induced crop losses have since slashed output to 5.8 million tons, far short of the 6.3 million tons needed to meet domestic demand, forcing a sudden reversal in policy.