The Competition Commission of Pakistan (CCP) has blamed the country’s recent sugar shortage on the export of the commodity, which it says was allowed based on inaccurate production and stock estimates. During a high-level meeting in Islamabad chaired by Federal Finance Minister Muhammad Aurangzeb, CCP officials revealed that the Sugar Advisory Board’s flawed data misrepresented the actual sugarcane crop output and available sugar reserves. This, they argued, directly contributed to the ongoing shortage affecting domestic markets.
Officials further pointed out that sugar exports have caused similar crises in the past, urging policymakers to avoid relying solely on statistics provided by sugar mills. They recommended obtaining production and stock data from independent sources to ensure transparency and accuracy in decision-making. According to the CCP, such measures would prevent future shortages and protect consumers from supply disruptions that often lead to price hikes.
The meeting also addressed longstanding legal battles involving alleged sugar cartelization. CCP officials disclosed that a 2009–10 inquiry had found clear evidence of cartel activity; however, its report remains unreleased. Initially, the Sindh High Court granted a stay order in the case until 2021, after which it moved to the Supreme Court. This delay has hindered regulatory action and kept the sector under scrutiny for over a decade.
Minister Aurangzeb announced that the government would strengthen the CCP and move towards deregulating the sugar sector. He stressed that deregulation would increase CCP’s oversight role and ensure greater market accountability. He also pledged to secure data from various government departments to aid in transparent investigations and informed policymaking.
Additionally, CCP officials confirmed that they are preparing proposals for the sugar sector reform committee, aiming to close loopholes that have allowed market manipulation. They believe that stronger oversight mechanisms, combined with independent data collection, will reduce opportunities for collusion and improve market stability.
On the same day, the Trading Corporation of Pakistan in Karachi issued a tender for the purchase of 100,000 tonnes of sugar to address the shortage. This procurement aims to stabilize supply in the domestic market, which has faced rising prices and consumer concerns due to the supply crunch. Authorities hope that timely imports, combined with tighter regulatory oversight, will prevent a repeat of the current crisis.