ISLAMABAD: The Public Accounts Committee (PAC) has barred the government from exporting sugar without its recommendations, putting on hold the recently approved export of 200,000 tonnes, while also blocking wheat imports pending its review.
The directives came after the Economic Coordination Committee (ECC) on September 14 approved the export of 200,000 tonnes of surplus sugar with safeguards aimed at maintaining domestic price stability.
The Sugar Advisory Board had earlier cleared the export after reviewing domestic consumption, requirements and available stocks. The government had said supplies and prices in major cities would be monitored to prevent price shocks.
The sugar industry, however, rejected the 200,000-tonne quota as insufficient and demanded permission to export at least one million tonnes.
The Pakistan Sugar Mills Association (PSMA) said stocks exceeded approximately 2.6 million tonnes as of August 31, 2026, against average monthly consumption of 560,096 tonnes.
It estimated that around 1.4 million tonnes would be needed until November 15, leaving the country with a surplus of approximately 1.25 million tonnes at the start of the 2026-27 crushing season. The association estimated the potential export value of the surplus at $600-700 million at current international market rates.
The industry also expects sugar production to exceed 8 million tonnes during the upcoming crushing season and has reiterated its demand for complete deregulation of the sector.
Separately, the PAC stopped the government from importing wheat until the parliamentary committee submits its recommendations, which are expected to be forwarded to the prime minister later this month.
The committee gave the Ministry of National Food Security and Research one week to provide a comprehensive briefing on the wheat crisis as it examined the impact of wheat procurement policy on farmers.
According to a report presented by the Auditor General of Pakistan, farmers’ confidence was shaken after the Punjab government, which had previously procured around 4 million metric tonnes of wheat at the fixed support price, did not procure wheat.
The audit recommended a detailed investigation into the large closing wheat stock recorded in April 2024 and Punjab’s subsequent decision not to procure the crop.
The committee was also informed that the federal government had announced a minimum support price of Rs3,900 per 40kg for the food year from May 2023 to April 2024, but the procurement plan had failed to deliver for farmers.
