PAC Blocks Sugar Exports, Wheat Imports Amid Supply Chain Worries

The Public Accounts Committee (PAC) has imposed a temporary block on sugar exports and wheat imports in Pakistan. The decision was made after the Economic Coordination Committee approved the export of 200,000 tonnes of surplus sugar with safeguards to maintain domestic price stability.

The Sugar Advisory Board had previously cleared the export, but the Pakistan Sugar Mills Association (PSMA) rejected the quota as insufficient and demanded permission to export at least one million tonnes. The association estimated that around 1.4 million tonnes would be needed until November 15, leaving the country with a surplus of approximately 1.25 million tonnes.

The PSMA also estimated the potential export value of the surplus at $600-700 million at current international market rates. They expect sugar production to exceed 8 million tonnes during the upcoming crushing season and have reiterated their demand for complete deregulation of the sector.

In a separate move, the PAC stopped the government from importing wheat until it submits its recommendations, which are expected to be forwarded to the prime minister later this month. The committee gave the Ministry of National Food Security and Research one week to provide a comprehensive briefing on the wheat crisis.