Pakistan is set to import as much as 300,000 tons of sugar through direct government-to-government (G2G) agreements, amid a domestic supply crunch and rising prices.
Officials told ProPakistani that negotiations are underway with Azerbaijan following recent high-level visits. Under the proposed arrangement, Pakistan will import sugar while exporting select commodities to Azerbaijan.
The Ministry of National Food Security has already confirmed a finalized agreement for 200,000 tons, with the first shipment expected in early September. However, crucial details — including the subsidy amount and final landing cost — remain undisclosed, sparking transparency concerns in an IMF-monitored subsidy-sensitive environment.
According to sources, the sugar import plan was approved by a committee headed by Deputy Prime Minister Ishaq Dar. The Prime Minister’s Office said the move is intended to “balance prices and provide relief,” but offered no further specifics. One insider suggested the subsidy could exceed Rs. 30 per kilogram — a figure that could alarm the IMF, which reportedly rejected Pakistan’s “food emergency” justification and warned that additional subsidies may threaten the $7 billion loan program.
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Last week, authorities claimed to have seized 1.9 million metric tons of sugar allegedly hoarded by private mills, placing 18 mill owners on the Exit Control List. The Pakistan Sugar Mills Association denied the allegations, dismissing them as “administrative chaos.” Meanwhile, Food Minister Rana Tanveer Hussain accused hoarders of artificially inflating prices.
The situation is particularly ironic given that Pakistan exported over 757,000 tons of sugar worth $406.9 million between August 2024 and January 2025, citing surplus stocks at the time. Since then, climate-related crop damage has reduced output to 5.8 million tons — well below the 6.3 million tons needed for domestic consumption — forcing a rapid policy reversal from exporter to importer.