ISLAMABAD :In a startling admission during a recent high-level government meeting, it was officially confirmed that the price of sugar in most urban centers across Pakistan has surged to Rs 190 per kilogram. The revelation came during a session of the National Price Monitoring Committee (NPMC), chaired by Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal.
As inflation continues to burden the average Pakistani household, the soaring sugar prices have added another layer to the cost-of-living crisis. With sugar being a staple in almost every household, its price hike is having a ripple effect on other food and beverage items.
Soaring Sugar Prices: Government Acknowledges Rs 190 per Kg Rate
According to the official statement released by the Ministry of Planning, the price of sugar in various cities across the country has reached an average of Rs 190 per kg, with some areas reporting prices as high as Rs 196 per kg, as confirmed by the Pakistan Bureau of Statistics (PBS). This marks a significant increase from the previous average price of Rs 140 per kg before the government allowed the export of sugar.
The data indicates that the price of sugar has jumped by approximately 40% in just a few months, a situation that has drawn serious concern from both consumers and policymakers.
The Role of Sugar Exports in Price Hike
The government acknowledged that a major factor behind this sudden spike in prices was the decision to export 765,000 tons of sugar earlier this year. Although intended to boost foreign exchange reserves and support local millers, the decision inadvertently led to a supply crunch in the domestic market, directly contributing to the price surge.
Critics argue that the government’s export policy lacked foresight and failed to assess the impact of reduced domestic supply on consumer prices.
Reduced Sugar Production in 2025 Intensifies Crisis
Adding to the problem is a significant decline in local sugar production during the current year. According to data presented in the NPMC meeting, sugar production for the year 2025 has dropped to 5.8 million tons, compared to 6.8 million tons in 2024.
This one-million-ton shortfall in production has made it difficult for domestic supply to meet demand, further exacerbating the crisis. Climate-related disruptions, reduced sugarcane cultivation, and inefficiencies in the supply chain are believed to have contributed to the drop in production.
Government Responds with Emergency Sugar Import Plan
In response to the worsening sugar crisis, the Ministry of National Food Security has decided to import 500,000 tons of sugar in an effort to stabilize the market and bring prices under control.
This emergency import plan is aimed at increasing supply in the domestic market, easing consumer concerns, and curbing hoarding and speculative buying. Officials hope that the imported sugar will start arriving in the country by late July or early August, which could potentially bring down prices ahead of major festivals and the upcoming sugarcane crushing season.
Inflation Trends Discussed: From 4.5% to 23.4% in One Year
Another key highlight of the meeting was a comparative review of inflation rates. The Chief of the Bureau of Statistics presented sobering figures showing that:
- Last fiscal year, the inflation rate stood at 4.5%
- Current fiscal year, the inflation has skyrocketed to 23.4%
The sharp increase in inflation is being driven by multiple factors, including the depreciation of the Pakistani Rupee, increased fuel and utility prices, global supply chain disruptions, and now, commodity shortages such as sugar.
Monitoring Mechanism: Price Scorecard System Underutilized
During the meeting, Minister Ahsan Iqbal emphasized the importance of active digital monitoring through the Price Scorecard System, a government initiative designed to track and control prices of essential commodities in real-time.
However, the system has been underutilized by several provinces. The minister shared comparative data on the usage of the Price Scorecard:
- Chief Secretary Khyber Pakhtunkhwa: Checked the Price Scorecard 114 times
- Chief Secretary Sindh: 10 times
- Chief Secretary Punjab: 6 times
- Chief Secretary Balochistan: 0 times
- DC Islamabad: 27 times
- DC Karachi: 6 times
- DC Quetta: 4 times
The lack of engagement from some provinces, particularly Balochistan, was met with disappointment and concern by the Planning Minister. He emphasized that without timely data collection and digital monitoring, it would be impossible to effectively regulate prices or prevent artificial inflation created by hoarders and black market actors.
Minister Ahsan Iqbal Calls for Coordinated Action
Ahsan Iqbal urged all provincial governments to prioritize digital governance and leverage technology to manage inflation and price hikes efficiently. He called for immediate improvement in the use of tools like the Price Scorecard System and directed the relevant departments to ensure transparency in the pricing mechanism.
“Provincial administrations must fulfill their responsibilities. If we fail to monitor the market accurately and intervene in time, we are failing the people,” said Iqbal during the session.
Consumer Reactions: Discontent and Frustration
Consumers across Pakistan have expressed deep frustration over the unchecked rise in sugar prices. For many low- and middle-income families, sugar has now become a luxury item, impacting not just households but also small businesses like tea stalls, bakeries, and sweet shops.
Social media platforms have been flooded with complaints and comparisons to previous years when sugar prices were kept under better control through strict government regulation and buffer stocks.
Political and Economic Implications
The sugar crisis comes at a politically sensitive time as the government grapples with growing public dissatisfaction over inflation and economic mismanagement. Opposition parties have criticized the government for allowing sugar exports despite signs of potential shortages, calling it a “criminally negligent” move that prioritized exporters over consumers.
Economists warn that if corrective actions are not taken promptly, food inflation could continue to rise, leading to increased poverty, malnutrition, and potential civil unrest, especially in urban centers.
Conclusion: Can the Crisis Be Averted?
The sugar crisis in Pakistan is a multi-layered problem stemming from a combination of poor planning, weak monitoring, global market conditions, and climate-induced agricultural decline. The government’s decision to import 500,000 tons of sugar is a step in the right direction, but experts believe that long-term reforms are needed.
These include:
- Establishing transparent sugar export policies
- Creating buffer stock reserves for essential items
- Strengthening price monitoring systems
- Investing in agricultural productivity
- Ensuring fair trade practices across the supply chain
If implemented effectively, such measures could help prevent future crises and restore public trust in the government’s ability to manage economic shocks.
