Prime Minister Shaybaz Sharif granted the full power of the Federal Revenue Council (FBR), FBI and Intelligence Office (IB) to take action against those in the sugar industry who collected an estimated 140 billion rupees in unjustified profits, according to a news report.
As part of a strategy in two phases, government officials and intelligence employees are stationed in sugar mills to monitor financial activities and collect evidence of misconduct. The authorities have collected important data on transactions, storing them, and processing the market that has plagued the sector for years.
During the ongoing campaign, the government identified the main players participating in storage, artificial prices, and the creation of fake and buildings used in financial transactions. Based on this guide, the authorities are preparing to provide criminal cases under the anti -money laundering laws, tax evasion laws, and anti -relief regulations.
The operation has already sent a strong signal to politically influencing sugar and speculators. Prime Minister Shaybaz Sharif personally oversees the campaign, with a focus that no entity – unlimited from political ties – will be exempted from accountability.
In the second stage, if the market forces are not intended, the government may directly target the owners of sugar mill who facilitated the manipulation of prices by hiding shares and making transactions through fraudulent accounts.
The impact of the campaign has already been reflected in sugar prices. Before the start of the procedure on March 13, the sugar was sold at 175-185 rupees per kilogram in Lahore and the surrounding areas. By March 16, the price decreased to 165 rupees per kilogram.
Sugar prices were steadily for several months. On November 22, 2024, at the beginning of the cracking season, the average national average price was 137 rupees per kilogram. By March 14, 2025, it rose to 173 rupees per kilogram, with prices in major cities such as Lahore, Karachi, Faisal Abad, Peshawar, and Kita up to 180-185 rupees per kilogram. The speculators expected more increases, as you expect some rates to reach 200 rupees per kilogram in the coming months and 220 rupees by the end of the season in November 2025.
In the midst of this inflationary trend, investors and merchants bought sugar shares strongly, expecting great profits. Government officials suspect that sugar mills, wholesalers, and distributors colluded to address prices. It is estimated that after the collaboration in the prices of previous mills and sales tax, sugar prices should be about 140-145 rupees per kilogram, with the maximum market price of 155-160 rupees per kg.
As part of the broader regulatory reforms, the authorities have suggested legal amendments that allow the government to confiscate chunky sugar instead of selling it at control and returns to the stockpile. This measure aims to inhibit the purchase and speculation storage.
FIA, IB and FBR have made raids and collected great evidence linking the breach, wholesalers and distributors to pay prices and manipulation in the market. With the approval of the Prime Minister, repression is scheduled to continue, ensure the stability of the market and prevent artificial inflation in the sugar sector.
