Planning Minister Ahsan Iqbal directed a medium-term framework for the liberalization of the sugar industry in Pakistan, stressing the need for data accuracy, crop zoning and backward integration to enhance productivity and export potential.
Iqbal, who chaired a meeting of the Prime Minister’s Committee on Sugar Storage, Forecasting and Planning, stressed the importance of effective coordination among government institutions to ensure timely, evidence-based decisions. The meeting has been advised in December 2024 to address challenges in sugar stock monitoring and export planning.
The meeting was attended by Federal Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Finance Ali Parvez Malik, representatives of Federal Board of Revenue (FBR), SUPARCO, Pakistan Sugar Mills Association (PSMA), and others. .
PSMA representatives highlighted ongoing problems with obtaining accurate data, noting that most sugar mills fail to provide timely information. They acknowledged FBR’s collaboration last year, which improved data verification, and suggested creating a single data source to enhance accuracy.
The PSMA also proposed an annual review of the performance of sugar mills, expressing concerns about financial paralysis caused by price controls, despite successful exports. They praised the tracking system implemented by the government to reduce sugar smuggling.
Minister Iqbal called for greater cooperation with SUPARCO for satellite data collection and directed the relevant ministries to address data inconsistency. “Experts and researchers must standardize data sets to solve the problem of heterogeneity,” he said, stressing the importance of accurate reporting for policy decision-making.
He proposed a ten-year medium-term master plan to liberalize the sugar industry, with a focus on improving sugar extraction rates, producing surpluses, and promoting exports. The Minister also stressed the importance of crop zoning to maximize agricultural productivity and protect agricultural land from incompatible use.
Iqbal highlighted backward integration as a way to enhance efficiency in the sugar industry, citing its success in other sectors. He pointed out that although Pakistan ranks as the fifth largest sugar producer in the world, its production efficiency remains alarmingly low.
“Pakistan’s sugar industry must prioritize productivity beyond just production. Backward integration can provide faster growth, similar to the progress made by fast-moving consumer goods,” he added.
A new committee, headed by the Chief Census Officer and including representatives of the Ministry of Industries, FBR, PSMA and SUPARCO, will be established to address data discrepancies and streamline the policy-making process.
According to the terms of reference, the committee will analyze sources of data related to sugar production, consumption and stocks. Evaluate the causes of data discrepancies; Developing a reliable mechanism to maintain reliable information. It will also propose a medium-term framework to ensure that the market develops efficiently and benefits consumers, industry and the economy.
Iqbal reiterated the government’s commitment to balancing the needs of local sugar producers with stable prices and adequate supplies for consumers. He urged stakeholders to prioritize long-term planning and productivity, assuring the industry that their challenges would be addressed as a matter of priority.