Finance minister announces first-ever legal sugar export to Afghanistan

Finance Minister Muhammad Aurangzeb announced on Tuesday that, for the first time, sugar exported to Afghanistan has been conducted through legitimate trade channels, with no smuggling involved.

This achievement was made possible through the coordinated efforts of law enforcement authorities deployed at the border, he added.

Speaking at a press conference alongside Information Minister Attaullah Tarar on Tuesday, Aurangzeb praised the law enforcement agencies for their role in ensuring a regulated trade process while highlighting the importance of this development for both the economy and the integrity of the supply chain.

“We are entering a new phase where the sugar trade to Afghanistan is fully controlled,” Aurangzeb stated, adding that this was a positive step toward eliminating smuggling and illegal activities.

He explained that Pakistan would have a total of 5.7 million tonnes of sugar this season, in addition to the stock carried over from the previous season, which he described as crucial for maintaining balance in the country’s current account.

Aurangzeb also underscored the introduction of a strict monitoring system for sugar production to curb malpractices.

“The Federal Board of Revenue (FBR) has deployed personnel at sugar mills nationwide to ensure accountability, and the presence of the Federal Investigation Agency (FIA), Intelligence Bureau (IB), and other agencies has strengthened enforcement,” he added.

The finance minister noted that the result of these efforts has been the reduction of profiteering and corruption within the sugar supply chain, ensuring that sugar is now being sold to genuine distributors.

In a bid to stabilise sugar prices and address rising costs, the federal government has decided to import raw sugar, also known as "shakkar," to be refined locally.

The move aims to bring down prices, which recently reached a nationwide average of Rs150.43 per kilogram. The imported sugar will also increase local production once refined.

On ongoing reforms within the sugar industry, Aurangzeb highlighted the newly implemented production monitoring system for the 2024-2025 sugarcane crushing season.

This system includes several oversight mechanisms, such as track-and-trace stamps, automated counters, and video recording, to increase transparency and prevent manipulation.

In another major announcement, the finance minister revealed that Pakistan had received a record $3.1 billion in remittances in February. Expressing gratitude to overseas Pakistanis, Aurangzeb reaffirmed that remittances are expected to remain high throughout the fiscal year, with a total of $36 billion projected.

“The increase in remittances, coupled with the positive trends in business and consumer confidence, along with a surge in industrial activities, signals a hopeful economic outlook,” he said.

With these measures, Pakistan aims to stabilize key sectors such as sugar, while enhancing transparency and ensuring better economic management in the face of challenges.