Sugar supply disrupted in metro as wholesalers protest fines
According to Rauf Ibrahim, Chairman of the Wholesale Grocers Association, sugar supply in the wholesale market has been suspended for the past three days, resulting in the retail price surging to Rs200 per kilogram.
He said that instead of acting against sugar mills and hoarders, the Karachi administration is unfairly targeting traders. According to a survey by The Express Tribune, as in other parts of the country, sugar at government-fixed prices is unavailable in Karachi, forcing consumers to buy it at inflated rates.
Sugar was being delivered at an ex-mill rate of Rs171.50 per kg until three days ago. However, wholesalers stopped purchases following the imposition of heavy fines, leading to a suspension in supply at the official rate of Rs165 per kg.
With buying activity halted, a sugar shortage has developed in the wholesale market, pushing prices up across the board - at ex-mill, wholesale, and retail levels.
In response to the overpricing, the Karachi Commissioner has launched a crackdown across all districts. A total of 87 profiteers have been penalised, with fines totaling Rs1.077 million. Seven shops were sealed, and two individuals were arrested.
According to the survey, sugar prices in the wholesale market have climbed to Rs190 per kg, with retail prices reaching Rs200 per kg. Citizens are calling on the administration to take meaningful steps to ensure sugar is available at government-approved rates.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Operation against sugar profiteers intensified
LAHORE: The Lahore district administration on Saturday intensified its crackdown on sugar profiteers, ensuring the essential commodity is available at regulated prices for the city's residents. According to the administration, the Assistant Commissioners, SDOs from the Punjab Enforcement and Regulatory Authority (PERA), and Price Control Magistrates have been actively monitoring markets to enforce compliance with fixed rates. The administration's zero-tolerance policy has led to significant actions, including fines imposed on multiple shopkeepers and the sealing of one shop found selling sugar at Rs190 per kg, with a case registered against its owner. To address complaints of sugar shortages in Baghbanpura, the administration swiftly supplied 36 tonnes of sugar to stabilise availability. Commenting on the crackdown, Deputy Commissioner Syed Musa Raza said that sugar would be sold at Rs173 per kg across Lahore, reinforcing the administration's commitment to preventing exploitation through inflated prices. 'The ongoing crackdown targets profiteers and hoarders, with strict penalties for violations. To facilitate reporting, the administration has established a dedicated control room number (0307-0002345) and encouraged residents to use social media platforms to lodge complaints about overpricing,' he added. He made it clear that exploitation under the guise of business will not be tolerated, and the administration is working tirelessly to ensure the availability of essential goods at fair prices. 'These efforts reflect the administration's dedication to protecting Lahore's residents from unfair trade practices, fostering a stable and equitable market environment through proactive enforcement and vigilant oversight,' he added. Copyright Business Recorder, 2025
Express Tribune
21 hours ago
- Express Tribune
Donors offer $5b for Reko Diq
Pakistan has received an overwhelming response from multinational donors and agencies, which have offered $5 billion in financing to execute the multibillion-dollar Reko Diq copper and gold mining project in Balochistan. Sources told The Express Tribune that the commitments received from foreign donors were more than the funding requirement for the Reko Diq project, which is estimated at $3 billion. They said that the donors included the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC) and US Exim Bank. Development agencies from Germany and Denmark have also offered financing. According to sources, the financial close of the project is at an advanced stage and Petroleum Minister Ali Pervaiz Malik, backed by the Special Investment Facilitation Council (SIFC), is taking the lead and making aggressive efforts to expedite work, which will pave the way for exploring the entire potential of the mining sector. It is interesting to note that the US Exim Bank has offered no cap on financing and is ready to provide capital, which Pakistan and other partners desperately need. The Ministry of Petroleum recently organised a webinar in association with the US embassy to woo American investors to participate in mining projects in Pakistan. State-owned exploration giant Oil and Gas Development Company (OGDC) is a key partner in the Reko Diq project and efforts are underway to kick off work. It also helped arrange a mineral conference, which attracted financing offers. Pakistan is blessed with abundant mineral resources that hold immense potential for fuelling economic growth and industrial development. The country's vast reserves of minerals, including coal, copper, gold, iron ore, chromite and precious stones, provide a solid foundation for the mining sector to thrive and contribute to economic development. Despite its huge potential, the mineral sector currently contributes around 3.2% to the gross domestic product (GDP), with exports accounting for only 0.1% of the world's total. However, with increasing exploration, foreign investment and infrastructure improvements, the mining industry is poised for significant expansion. Pakistan's mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometres. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment to 300,000 workers. Some of the country's most notable mineral reserves include the world's second-largest salt mines, the fifth-largest copper and gold deposits and significant coal reserves. Furthermore, Pakistan holds vast quantities of bauxite, gypsum and precious stones such as ruby, topaz, and emerald, which offer considerable export potential. Globally, mineral resources play a crucial role in economic development. Many developed countries, including China, Italy, Turkiye, Spain and Brazil, have effectively leveraged their mineral wealth to fuel industrial growth, increase employment and enhance per-capita income. Pakistan's mineral sector holds similar promise. With strategic planning and investment, the country can improve trade, generate employment and facilitate infrastructure development, ultimately accelerating economic progress. The local mining sector is increasingly attracting foreign investment, with global firms eyeing the untapped mineral reserves. The Reko Diq copper and gold project, located in the Chagai district of Balochistan, has the world's largest untapped copper reserves and stands as a milestone for Pakistan's mining ambitions. The project, revived by Canada's Barrick Gold, is expected to start producing copper and gold by 2028, with an initial investment of $5.5 billion. According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project, the reserves are expected to generate $74 billion in free cash flow over the next 37 years. The mine is anticipated to generate $2.8 billion in annual exports, create thousands of jobs and transform the local economy. A planned expansion will increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional investment of $3.5 billion. Under an intergovernmental transaction agreement, the federal cabinet has approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia. This underscores the region's potential as a hub for foreign investment in the mining sector. Saudi Arabian mining company Manara Minerals will acquire the 15% stake, potentially involving an investment of $1 billion. Logistics for the Reko Diq mine will be managed through a railway track, which is being built in partnership with Pakistan Railways. Railway tracks will essentially entail moving mining supplies to Karachi and eventually exporting copper concentrate and gold.
Express Tribune
21 hours ago
- Express Tribune
Trader e-invoice deadline extended
Listen to article The government on Friday gave a seven-month extension to traders in real-time electronic transmission of sales tax receipts to the computers of the Federal Board of Revenue (FBR), accepting the impracticality of the earlier deadlines and addressing one of the four concerns of the business community. The FBR issued a new statutory regulatory order to set new deadlines by dividing the businesses into seven categories as opposed to the earlier two categories. The FBR notification superseded its April 2025 order and determined new deadlines to complete the registration and testing for integration of businesses' hardware and software with the FBR's computerised system. The notification stated that as against the earlier deadline to electronically transmit invoices by June 1st, the sales tax registered persons can now complete the action by December 1st, 2025. The individuals and associations of persons having over Rs100 million turnovers in the past one year will be registered by October 1st. For some, these relaxed deadlines are still overambitious due to the limited capacity of the FBR and the private integrators to provide complete online solutions for sending electronic invoices to the FBR. The integration will be done by four companies: M/s Haball Limited, Webdnworks Private Limited, EY Ford Rhodes, and Pakistan Revenue Automation Limited, which is a subsidiary of the FBR. According to the law, only a licensed integrator having a valid FBR license can configure a registered person's electronic invoicing software for real-time electronic transmission of sales tax invoices to the FBR's server. The government has set the maximum invoice charge at Rs10 per invoice or Rs1 million. Extending deadlines was one of the four demands set out by the traders for returning to normal trading hours. The other three demands are the withdrawal of arrest powers on suspicion of fraud, the end of power to include half of over Rs200,000 cash expenses in income, and calling back FBR inspectors from business premises. Any taxpayer that does not integrate by the extended deadline or contravenes any provision of this Act is liable to penal action, according to the tax laws. According to the revised notification, as against the earlier deadline of May 1st for the corporate sector to electronically transmit sales receipts, the government has now only asked the public sector companies, companies with over Rs1 billion turnover, and all importers to complete the action by September 1st. There are a total of 390,000 registered sales tax companies and persons in Pakistan. But there are only 10,000 registered companies in Pakistan that have over Rs1 billion turnovers and file and pay any sales tax. There are another 100,000 firms that have below Rs1 billion turnovers and pay any sales tax, according to the data compiled by those who are in the digital integration business. Former Member of Inland Revenue Operations FBR Dr Hamid Ateeq Sarwar told the Senate Standing Committee on Finance last month that there were 200,000 registered persons and only 60,000 pay any tax. He had also said that the International Monetary Fund (IMF) did not allow the abolition of the additional 4% sales tax being charged from unregistered persons and instead linked the removal with a one-fourth increase in the sales tax base. The supposedly punitive 4% extra tax is now a source of remaining outside the tax net, as the businesses feel comfortable paying the additional tax and then recovering it through prices instead of becoming part of the tax regime. The FBR laws and regulations require that in case of supplies by a manufacturer or importer to an unregistered distributor, the tax invoice shall contain the CNIC or NTN of such unregistered distributors. According to the revised notification, all companies excluding the public sector, importers, and those having over Rs1 billion turnover will get registered by October 1st. The companies having less than Rs1 billion turnovers are required to get registered by November 1st. The traders had also objected to the Rs10 per invoice cost. Sources said that the government had considered giving subsidies, which were estimated in the range of Rs40 billion to Rs60 billion. The second option was PRAL, which can provide a free-of-cost service. Electronic invoicing is mandatory for all businesses. A registered person is required to install the electronic invoicing system through a licensed integrator.
