PM aims to utilise sugar report to rectify system flaws

Cabinet decides to form inter-ministerial committee to prevent unnecessary price hikes

ISLAMABAD: Prime Minister Imran Khan on Tuesday informed the federal cabinet that the main purpose behind conducting the sugar inquiry was to bring to the fore the reasons and facts that led to the rise in sugar prices which unnecessarily burdened the people.

Premier Imran, while chairing the meeting of the federal cabinet, discussed the future course of action by the agencies concerned in line with the recommendations of the sugar inquiry report and said that steps would be taken to “rectify the flaws in the system in light of all the facts revealed by the inquiry”.

Subsequently, the cabinet decided that an inter-ministerial committee would be constituted to review the facts in the report from various angles and suggest comprehensive reforms to make the existing system, including the role of regulators, more effective.

“These measures are aimed at ensuring that the people are protected from the burden of exploitation and unnecessary price hikes in the future,” the premier said.

On May 21, the federal government had shared the details of the FIA-led sugar crisis inquiry commission’s forensic report — a damning document that outlines a series of misdeeds by sugar mill owners. The alleged fraudulent activities include fudging the production cost to claim subsidies, manipulating the market, underreporting their sales, committing fraud and exploiting farmers.

The sugar barons raked in a “windfall profit” of Rs100 billion during the sugar crisis this year alone.



The stakeholders of the mills involved in wrongdoing include PTI leader Jahangir Tareen, PML-Q’s Moonis Elahi, PML-N President Shehbaz Sharif’s son Salman Shehbaz, Federal Minister Khusro Bakhtiar’s relative Omar Shehryar and the Omni Group.

Meanwhile, the cabinet was given a detailed briefing on the progress made so far by the provinces regarding wheat procurement and future supply and demand estimates.

In order to ensure that there is no shortage of wheat and flour and there is a balance in supply and demand, the cabinet decided to constitute a high-level committee, which will give recommendations in this regard.

Further, the prime minister expressed condolences to the families of the people martyred in the PIA passenger plane crash in Karachi, saying that loss of human life is irreparable and “we share the grief of the bereaved families in this hour of need and stand by them”.

The cabinet was also briefed in detail on the coronavirus situation in the country and strategies to control it from spreading. The meeting called for full implementation of standard operating procedures in public transport, markets and industries to avoid contracting the virus.

The cabinet members appreciated the testing, tracking, and quarantine (TTQ) strategy for people diagnosed with coronavirus and reviewed the resource management system to improve health facilities in the country and ensure the best and efficient use of available resources.

Also, the cabinet was given a detailed briefing on the situation of locusts in the country, measures for prevention and short- and long-term strategies.

The cabinet appreciated the performance of the NDMA, Pakistan Army as well as the cooperation of the government of China, DFID and FAO to prevent locusts’ invasion.

The prime minister said, “Out-of-the-box solution, including provision of incentives to the people at local level, should be considered to counter locusts’ attack.”

Meanwhile, the premier directed the home secretary to submit the recommendations of the Anti-Trafficking Task Force as soon as possible so that further action could be taken to curb smuggling.

The cabinet approved the export of locally manufactured personal protective equipment (PPE), sanitisers, etc for protection from coronavirus. A committee – comprising the Ministry of Commerce, the Ministry of Health, the Ministry of Industries and Production and the Ministry of Science and Technology – has been empowered to take decisions regarding banning export of any particular item that is of national importance.

The cabinet also endorsed the decisions taken at the May 20 and 21 meetings of the Economic Coordination Committee. These decisions include incentives for special economic zones, policy on making smart phones in the country, Prime Minister’s Covid-19 Relief Fund, petroleum levy on LPG, issuance of Sukuk bonds worth Rs2 billion.