The Competition Commission of Pakistan (CCP) has accused the Federal Board of Revenue (FBR) of refusing to share data related to sugar price manipulation that occurred in March 2025, despite repeated requests. According to a news report, the remarks were made by CCP Chairman Dr. Kabir Ahmed Sidhu during a meeting of a parliamentary panel headed by Dr. Ikhtiar Baig, which is investigating decisions allowing sugar export and import.
The meeting also included MNAs Farhan Chishti and Tahira Aurangzeb, who alleged that sugar mill owners made significant brackly newss when retail prices surged above Rs200 per kilogram, forcing the government to import 0.75 million tonnes of sugar to build a strategic reserve.
The parliamentary panel has been tasked with identifying those responsible for past policy decisions, assessing cartelization in the sector, and reviewing the performance of both the CCP and the Sugar Advisory Board (SAB).
Dr. Sidhu informed the panel that whenever sugar exports were approved in the past, domestic shortages and price hikes followed. He reiterated that CCP’s multiple inquiries had revealed recurring anti-competitive practices and structural weaknesses in the market.
In its briefing, the CCP outlined its major recommendations for sector reform:
- Deregulation of sugar pricing by removing minimum and maximum price controls to allow market forces to determine rates.
- Diversification through the promotion of gur (jaggery) and ethanol production to enhance competition.
- Independent data verification for all government export and import decisions, avoiding reliance on industry-supplied information.
- Real-time coordination with the FBR and provincial governments to share tax, production, and stock data.
- Maintenance of government reserve stocks to prevent manipulation during shortages.
- Free but regulated trade of sugar through transparent, data-driven monitoring rather than discretionary approvals.
The CCP chairman stressed that effective reform requires data-sharing across institutions. He urged the parliamentary convener to direct the FBR to immediately provide the March 2025 data, warning that the delay was impeding the ongoing investigation.
Dr. Sidhu said that despite multiple inquiries exposing collusive pricing and cartelization, regulatory fragmentation and judicial stays had limited enforcement actions. “Deregulation, competitive neutrality, and verified data systems are essential for market integrity,” he said.
Responding to the CCP’s position, a Pakistan Sugar Mills Association (PSMA) representative told the panel that the industry had opposed sugar imports, citing sufficient domestic stock. He said PSMA had agreed to supply sugar at an ex-mill rate of Rs165 per kg, claiming that subsequent increases occurred at the retail level.
He added that the FBR’s closure of the S-Track portal had blocked sugar mill stocks from entering the market to prioritise imported sugar sales. However, the claim was contested by the Additional Secretary of the Ministry of Industries and Production, who argued that export permissions — not the portal issue — were the main trigger for the price surge.
He said the PSMA had failed to honour its price commitments with the government, leading the Cabinet to allow imports. He clarified that the SAB serves as a recommendatory body, while final decisions on exports rest with the Federal Cabinet.
Representatives from the Finance Ministry avoided commenting on the issue and referred questions regarding tax exemptions and import duties to the FBR.
Dr. Ikhtiar Baig, the panel’s convener, described the episode as “sugar gambling” by sector players and called for full accountability across government and industry stakeholders.
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