Sugar price control fails
Although wholesale prices have recently dropped by Rs8/kg to Rs175, this reduction has not been passed on to end consumers.
In most city markets, sugar is being sold for between Rs185 and Rs190/kg, with retailers refusing to lower their prices. Under an agreement between the federal government and the Pakistan Sugar Mills Association, the ex-mill price of sugar was fixed at Rs165/kg effective from July 15. Following that, the Karachi commissioner issued official wholesale and retail prices. However, enforcement on the ground remains virtually non-existent.
Consumers complain that price control committees have become ineffective, and government measures exist only on paper.
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Express Tribune
18 hours ago
- Express Tribune
Consumers pay bitter price for sweetener
In the digital age, there's no excuse for opacity as a transparent digital dashboard that tracks sugar from mills to wholesalers to retailers would make it harder for hoarders and profiteers to operate undetected. Photo: file Due to a lack of government attention, sugar prices have skyrocketed across the country, with an increase of up to Rs60 per kilogram at the retail level. Experts believe that the artificial sugar shortage is a direct result of inaccurate data and flawed decisions by federal institutions concerning sugar production and consumption. In the midst of this crisis, sugar profiteers have become active once again, manipulating prices in major markets across Lahore. The government's weak control has allowed profiteers to exploit the public, which is forced to buy sugar at inflated rates. In 2024, sugar was selling at Rs140 to Rs145 per kilo, but it is now being sold for Rs190 to Rs200 per kilo. The official DC rate remains at Rs145, but no retailer is selling at this price. Retailers argue that they themselves are getting sugar at higher prices. According to Sheikh Tanveer, the price of a 100kg sugar sack was Rs12,000 last year, but due to poor planning, it has now soared to Rs18,000 at the ex-mill rate. "Retailers make little profit, while the real beneficiaries are mill owners and sugar profiteers," said Tanveer. Even though the government claims to maintain complete records of sugar production and consumption, a crisis occurs every year. Citizens claim that due to poor government policies, they are forced to spend their hard-earned money buying sugar at inflated rates. This time, the price hike is not minimal, adding up to Rs40 per kilo. One citizen demanded that the Prime Minister take notice and act against those responsible. "But nothing ever happens in this country," he added. "Inflation robs us in broad daylight. It is the government's responsibility to control prices, yet no department seems to be doing anything," lamented the local. Sources have revealed that the same profiteers, who were previously targeted by the Federal Investigation Agency (FIA) with full force, including arrests and record seizures, are once again operating in an organized manner, as they dominate future sugar pricing, especially in markets like Lahore's Akbari Mandi and Karachi's Jodia Bazaar. The FIA had previously launched a strong crackdown, but suddenly and without explanation, the operation was called off. It is unclear whether this was due to the influence of powerful profiteers or fear within the government, but sources claim officials made personal gains during the process. Till date, not a single sugar profiteer has been brought under the law. According to the Pakistan Sugar Mills Association, the country produced 6.8 million tonnes of sugar during 20242025, which was 3 per cent more than the previous year. There was already a surplus of 7 million tonnes last year, prompting the government to allow exports. Despite sufficient availability, hoarders are now creating an artificial shortage once again, pushing sugar prices up to Rs200 per kilo. Currently, Federal Board of Revenue (FBR) representatives have been deployed at sugar mills to prevent tax evasion. According to the FBR, this has improved tax recovery. Additionally, joint raids by the FBR and Intelligence Bureau are being conducted against hoarders across the country to stabilize prices. While there was no price hike during Ramadan, sugar prices have surged once again across the country. However, beyond targeting hoarders, no action has been taken against the profiteers responsible for driving up prices. Meanwhile, the Ministry of Food is preparing to spend valuable foreign exchange on sugar imports. Tendering has already begun, though the next sugarcane crushing season is scheduled to start in November. In this entire scenario, billions of rupees are being drained from the pockets of the poor, while neither the government nor the bureaucracy seems affected.
Express Tribune
18 hours ago
- Express Tribune
Sugar price control fails
Despite the Karachi commissioner setting the wholesale price of sugar at Rs170 per kilogramme and the retail price at Rs173, there has been no implementation of these official rates across the city. In wholesale markets, sugar is being sold at Rs175/kg, while at the retail level it is priced around Rs190/kg. In smaller neighborhood shops, the price has surged to as high as Rs200/kg, leaving consumers with no option but to purchase sugar at inflated rates. Although wholesale prices have recently dropped by Rs8/kg to Rs175, this reduction has not been passed on to end consumers. In most city markets, sugar is being sold for between Rs185 and Rs190/kg, with retailers refusing to lower their prices. Under an agreement between the federal government and the Pakistan Sugar Mills Association, the ex-mill price of sugar was fixed at Rs165/kg effective from July 15. Following that, the Karachi commissioner issued official wholesale and retail prices. However, enforcement on the ground remains virtually non-existent. Consumers complain that price control committees have become ineffective, and government measures exist only on paper.
Express Tribune
2 days ago
- Express Tribune
PSX closes week up on optimism
Listen to article The Pakistan Stock Exchange (PSX) closed the week on July 25, 2025 with a steady upward trajectory as the benchmark KSE-100 index gained 610 points, or 0.4% week-on-week (WoW), to settle at 139,207. Market sentiment remained cautiously optimistic amid corporate earnings' announcements, expectations of a 50-basis-point rate cut in the upcoming monetary policy committee (MPC) meeting and a major confidence boost following S&P Global's upgrade of Pakistan's credit rating to 'B-' with a stable outlook. On a day-on-day basis, the PSX commenced the futures rollover week on a negative note on Monday as the KSE-100 index ended at 138,218, down 380 points, or 0.27%. Investors resorted to profit-taking and also remained cautious ahead of policy rate decision. The market had a positive day on Tuesday, when the index posted a gain of 1,202 points, or 0.87%, to a new all-time high at 139,420, driven by assurances of support by the army chief to business leaders. Continuing its consolidation near 140,000, a key psychological level, the bourse closed on Wednesday at 139,254, translating into a loss of 165 points owing mainly to profit-booking. The PSX had a negative day on Thursday, where the index shed 562 points amid investor caution over futures rollover. On the last day of the week on Friday, the market gained 515 points and settled at 139,207 over enthusiasm sparked by Pakistan's rating upgrade and hopes of monetary easing. Arif Habib Limited (AHL) noted in its review that the market witnessed mixed sentiment during the outgoing week, rallying on Tuesday amid ongoing June 2025 quarterly corporate results and expectations of a potential rate cut in the upcoming MPC meeting. However, profit-taking the following day capped gains. Boosting investor sentiment further, S&P Global upgraded Pakistan's credit rating to 'B-' with a stable outlook, citing macroeconomic stabilisation and reform progress, it said. In treasury bills' auction, the State Bank raised Rs424.4 billion against the target of Rs200 billion, with yields dropping 10-39 basis points across all tenors. In June 2025, repatriated profits and dividends plunged 72.4% year-on-year (YoY) and 56.7% month-on-month (MoM) to $114.2 million; though FY25 saw a marginal 0.2% rise to $2.2 billion. In June, AHL mentioned, Pakistan's power generation rose 2.1% YoY to 13,744 gigawatt hours (GWh) from 13,459 GWh in June 2024, and increased 8% MoM. Oil and gas production fell 12% and 7% YoY, respectively, in FY25, driven by output pressures from key fields amid forced curtailments and weaker gas demand. Among other economic news, the State Bank's foreign exchange reserves fell $69 million to $14.46 billion. However, the Pakistani rupee appreciated marginally by 0.5%, closing at 283.45 against the dollar, AHL said. Sectors that contributed positively were investment banks (408 points), exploration & production (213 points), fast moving consumer goods (124 points), auto assemblers (59 points) and power (52 points). Meanwhile, sector-wise negative contributions came from miscellaneous (149 points), banks (71 points), leather (54 points), pharma (35 points) and textile composite (31 points), it added. Syed Danyal Hussain of JS Global noted that the KSE-100 index remained range bound during the week but ended on a positive note at 139,207, reflecting a 0.4% WoW gain. On the flip side, the average daily turnover dropped 17% to 635 million shares. In a major development, he said, the S&P Global upgraded Pakistan's sovereign credit rating to 'B-' from 'CCC+', triggering a rally in long-dated dollar bonds to three-year highs and improving investor confidence. Meanwhile, the government was aiming to address the Rs2.8 trillion worth of circular debt in the gas sector without burdening consumers, with multiple plans under consideration. During the week, the central bank released the advance calendar for MPC meetings scheduled for FY26 and the next meeting is set for July 30. In other developments, Pakistan secured $12.4 billion in foreign loans during FY25, up $2.6 billion from FY24. Repatriation of profits and dividends totalled $2.2 billion in FY25, remaining flat YoY. Notably, the power sector saw the largest outflow of $399 million, marking a 62% YoY increase. In the latest T-bill auction, the SBP raised Rs424 billion against the target of Rs200 billion, with yields falling 10 to 39 basis points across various tenors. Finally, the SBP's foreign reserves declined $69 million WoW to $14.45 billion, primarily due to external debt repayments.
