Pakistan's political elite make massive profits as they 'fuel sugar price surge'

Pakistan's powerful political elite, deeply entrenched in the country’s sugar industry, have pocketed billions of rupees through unchecked manipulation of sugar exports and local prices.

Roughly 60% of Pakistan’s sugar production comes from mills owned or controlled by political heavyweights currently in power. These millers secured government approval to export hundreds of thousands of tons of sugar in recent months, under the condition that they would keep local prices below PKR 140 per kilogram.

However, after initially maintaining the price ceiling, they allowed domestic prices to soar, formalizing the price hikes without facing any accountability.

According to government data, authorities have approved sugar exports of 750,000 tons since June. In December, sugar prices averaged PKR 131.85 per kg. Since then, prices have jumped 30.37%, hitting PKR 172 per kilogram by March, with open market rates reportedly crossing PKR 180 per kilogram in some areas.

Billions in profits amid rising prices

A report on the sugar crisis released during former prime minister Imran Khan's government mentioned that every PKR 1 per kilogram increase in sugar prices results in an additional PKR 5.2 billion (about $18.7 million) in profits for the mill owners.

Officials told Nukta that with the price now PKR 40 per kilogram higher since December, millers have raked in nearly PKR 208 billion (approximately $740 million).

In what critics are calling an eyewash, Deputy Prime Minister Ishaq Dar announced a price cap of Rs164 per kilogram earlier this week — still far above the initially agreed PKR 140 kilogram.

Dominance of key political figures

Official data reviewed by Nukta shows that 16 influential sugar mill groups dominate the market, holding a combined 58% market share with a crushing capacity of 402,500 tons. Many of these mill groups are directly tied to Pakistan’s ruling political families and their close allies.

Among the key players, Jahangir Tareen’s JDW and JK Group holds the largest market share at 11%, with a crushing capacity of 111,100 tons. His mills include JDW Sugar Mills Ltd (Units I-III), Deharki Sugar Mills, JK Sugar Mills Ltd (Units I & II), and JK Sugar Mills Ghotki.

Al Moiz Group commands 7% of the market with a total crushing capacity of 71,000 tons. It operates five mills: Al Moiz Industries (Units I & II), Baba Farid Sugar Mills, Thal Industries Corporation (Layyah and Safina).

Rahim Yar Khan (RYK) Group also holds a 7% share with 64,000 tons capacity, managing Alliance Sugar Mills, RYK Mills, and Two Stars Industries.

Tandlianwala Group, owned by Special Assistant to the Prime Minister (SAPM) on Industries Haroon Akhtar and his brother Humayun Akhtar, controls 4% of the market through three mills with a crushing capacity of 36,000 tons.

OMNI Group, linked to President Asif Ali Zardari’s close aide Anwar Majeed, owns eight sugar mills including Ansari, Bawany, Chamber, Khoski, Larr, New Dadu, Naudero, and Tando Allahyar. Their total crushing capacity stands at 62,500 tons, representing a 6% market share.

Ramzan Group, led by Prime Minister Shahbaz Sharif’s son Muhammad Salman Shahbaz, operates Al-Arabia and Ramzan Sugar Mills, controlling 3% of the market with a combined capacity of 33,000 tons.

Other major players include Hunza Group with 3% market share, 25,000 tons capacity; Chashma Group at 3% share with 27,810 tons capacity (Chashma Sugar Mills Ltd Units I & II, Premier Sugar Mill and Distillery Co Ltd). Besides, Ashraf Sugar Mill with a capacity of 20,000 tons is owned by former chairman of Pakistan Cricket Board (PCB) Zaka Ashraf.

Al Noor, Tara Chand, Pattoki, Shakarganj, Ittefaq, Haq Bahu groups hold 1-3% market shares each.

Similarly, Army Welfare Sugar Mill has a capacity of 4,000 tons, Adam Sugar Mill (10,000 tons), Al Abbas Sugar Mill (8,000 tons), Chaudhry Sugar Mill (17,000 tons), Hamza Sugar Mill (38,000 tons), Etihad Sugar Mill (25,000 tons), Fatima Sugar Mill (20,000 tons), Habib Sugar Mill (11,500 tons), Madina Sugar Mill (32,000 tons) and Sheikhoo Sugar Mill 25,000 tons capacity.

Despite clear evidence of market manipulation and conflict of interest, no official inquiry or regulatory action has been initiated against the millers.