ISLAMABAD – The government of Pakistan has cancelled a major sugar import tender after the International Monetary Fund (IMF) rejected a proposed tax exemption on imported sugar. Initially, the Trading Corporation of Pakistan (TCP) had issued a tender for the import of 300,000 metric tons of sugar, which has now been withdrawn.
Instead, TCP has floated a revised tender to import 50,000 metric tons of sugar. Bids from international suppliers have been invited, with a submission deadline of July 22. This decision marks a significant shift in Pakistan’s sugar import strategy following IMF pressure.
Earlier, the government had announced its plan to import 500,000 tons of sugar and had waived all duties and taxes to facilitate the process. TCP issued the 300,000-ton import tender on July 11 as part of that plan. However, the IMF strongly opposed the tax exemption, raising concerns that led the government to reconsider.
Meanwhile, despite allowing sugar imports, the ex-mill price of sugar has increased. Sources say the new price is Rs25 per kilogram higher than the rate fixed at the time of export approval. In March 2025 alone, the ex-mill price rose by Rs6 per kilogram compared to earlier rates.
According to cabinet documents, the government set the sugar ex-mill price at Rs140 per kilogram in June 2024. By March 2025, it was revised to Rs159 per kilogram. Most recently, the government and sugar mill owners agreed to a new rate of Rs165 per kilogram.
It’s important to note that the government began approving sugar exports in June 2024, with permission granted to export up to 750,000 tons from June to October. Despite this, rising domestic prices and IMF restrictions have forced a partial rollback of the sugar import strategy.