Daily Times

Information Minister Shibli Faraz and PM’s aide on accountability, Shehzad Akbar, on Thursday revealed details from the Sugar Forensic Commission (SFC) constituted to find out those behind the sugar shortage and price hike of the commodity in the country earlier this year.

This was stated by Information Minister Shibli Faraz while giving a media briefing in Islamabad today along with Special Assistant to Prime Minister on Accountability Mirza Shahzad Akbar and Special Assistant on Political Communication Shahbaz Gill.

He said the PTI government is firmly committed to accountability and transparency in governance.

Sugar inquiry commission was set up because there has been a cycle of sugar price increases from December 2018 to August 2019, where prices were hiked up to 33%, which, in rupee terms, translates to Rs17 per kilogramme.

hahzad Akbar said Commission also found irregularities in the form of giving advance payments to farmers in the form of cash or commodity, which is akin to unregulated banking.

However, it was found by the commission that many sugar mill owners were receiving telegraphic transfers for payments for sugar sold to Afghanistan from the US and Dubai, therefore seemingly whitening money and earning dollars at the same time.

Another important finding highlighted in the report is that sugar mills paid an estimated Rs22bn in taxes to the Government of Pakistan, but out of that total amount, Rs12bn was reclaimed in rebates. Hence, the net contribution was close to around Rs10bn.

The PTI government’s decision to allow export of sugar led to increase in the retail price, according to the committee’s main findings. The federal and the provincial governments ignored the warnings of low sugar stocks and increase in prices, it added.

Before the decision to allow export of 1 million metric tons of sugar the per kilo sugar price was Rs55 in December 2018 that jumped to Rs71.44 per kg in June 2019 – an increase of Rs16.47 per kg or 30%, according to the findings.

The report said that despite the clear calculations of the stock position after deducting the strategic reserves, Sugar Advisory Board in its meeting of June 2019 did not ban the export of sugar.