Govt to challenge Islamabad High Court relief to sugar barons

SAPM questions sugar price coming down to Rs70/kg without action

ISLAMABAD: The federal government on Friday decided to challenge the Islamabad High Court’s (IHC) 10-day stay order on action against the sugar mill owners, who according to an FIA-led inquiry commission were involved in a series of misdeeds and responsible for the countrywide price hike of the sweetener through market manipulation and other illegal tactics.

A day earlier, IHC Chief Justice Athar Minallah had stopped the government from acting on the recommendations of the commission for 10 days – until the next date of hearing — after the stakeholders of the industry assured the court that sugar would be sold for Rs70 per kg.

“How will the public get sugar at Rs70 per kg when the government is not able to take action against hoarders?” Special Assistant to the PM on Accountability Shahzad Akbar told a private TV news channel.

He added that the government would challenge the IHC’s stay order.

The court issued the order while hearing a petition filed by the owners of 17 sugar mills including PTI stalwart Jahangir Tareen and the Pakistan Sugar Mills Association (PSMA) against the commission’s report.



The court also issued notices to the SAPM on accountability, members of the commission including its head FIA Director General Wajid Zia and other officials seeking their response to the sugar industry’s plea.

The petitioners adopted the stance that the inquiry commission had exceeded its constitutional authority in the preparation of the report by trespassing into the domain of the provinces.

They also maintained that the recommendations forwarded to the government by the commission did not fall within the ambit of the law.

During the proceedings, Ali Khan, the lawyer representing the PSMA, said the Constitution had separately mentioned the powers of the federation and the provinces.

“An ad hoc committee was formed in February to take action,” he said. “The committee wrote to the federal government that it should be transformed into a commission to provide it with legal cover,” he added. “The committee was turned into a commission as soon as the suggestion was given.”

The lawyer said the commission wrote a 324-page report citing various reasons to the federal government asking for a forensic audit of the sugar mills.

He contended that the commission went beyond its terms of references and a “media trial” of the owners of sugar mills was under away by the SAPM on accountability and ministers.



Justice Minallah remarked that sugar was a basic necessity for the common man and the federal government should take steps to ensure its availability.

A lawyer representing a sugar mill told the court that the commission had not distinguished between the use of sugar for public and commercial purposes in its report.

The judge observed that 30% of sugar should be sold to the public and the purpose for which the commission was formed had not been addressed.

“If the commission has not said anything on the availability of sugar for the public, then what did it say?” he added.

He noted that the commission in its findings had offered no solution for the convenience of the common man.

“The government is also selling subsidised sugar at Rs80 per kg at Utility Stores,” Justice Minallah remarked.

On the IHC chief justice’s inquiry, lawyer Khan told the court that the price of the sugar was Rs53 per kg in November 2018.

Justice Minallah asked the reason for the price increasing from Rs53 per kg to Rs85 per kg in two years. He reiterated that the commission should have addressed the issue.

“This court does not usually interfere with matters pertaining to the executive,” he told the PSMA counsel, adding that the court would summon the federal government to respond to the matter.

The judge said the court would issue a stay order if the sugar mill owners agreed to sell the sweetener for Rs70 per kg.

The PSMA lawyer agreed to the condition and Additional Attorney General Tariq Khokhar also said the federal government did not oppose the court’s option.

The IHC directed the registrar’s office to fix the case for hearing after 10 days.

Apart from the SAPM on accountability and the members of the commission, the court also summoned the cabinet division and homes secretaries the Anti-Corruption Punjab director general, the Intelligence Bureau deputy director, and representatives of the Security and Exchange Commission of Pakistan, the State Bank and the Federal Board of Revenue.