Nawaz's close aide slams PML-N govt's decision to import sugar amid price hike

• Fawad questions motive behind emergency sugar import decision. 
• Ex-principal secy to PM says food industry benefits from import. 
• Criticises use of forex on item most people can't afford.

Former federal minister Fawad Hassan Fawad, has sharply criticised the government’s decision to import 350,000 metric tonnes of sugar, questioning both its justification and the beneficiaries of the move.

In a series of posts on X (formerly Twitter), Fawad, who also served as principal secretary to the former prime minister Nawaz Sharif, said the decision to spend nearly $300 million on sugar imports “in the name of controlling price for the common man” demands immediate review. 

He argued that the primary consumer of sugar is not the average citizen, but the food and beverage industry — the same group that had earlier profited from sugar exports and now stands to benefit again.

“You shouldn’t be surprised,” he wrote. “They were the very people who first got the export orders in the name of earning foreign exchange, and are now spending the same for themselves while making huge profits through price manipulation.”

His remarks come in the wake of the government’s emergency sugar import plan announced last week, which waived all duties and taxes on the import of 350,000 tonnes in two phases. 

The Trading Corporation of Pakistan (TCP) has been directed to execute the import, following a decision made by the Sugar Advisory Board on June 23 and approved by the federal cabinet on July 4. The Federal Board of Revenue has also slashed sales tax from 18% to 0.25% and waived the 3% VAT on up to 500,000 tonnes of white sugar imports till September 30, 2025.

Fawad, who served as the federal minister during the interim setup in 2023, questioned why the government has chosen import over accountability.

“Price control is a core government function, and failure to deliver on that front cannot justify further spending of precious foreign exchange. What’s needed is a probe into the role of the sugar industry, traders, and middlemen behind the hike.”

He also criticised the health implications of sugar consumption, calling it “one of the most injurious substances consumed by people,” and questioned why valuable foreign reserves were being spent on something the majority can no longer afford.

“People today can barely buy beverages or sweets, yet we’re importing sugar in their name and borrowing more foreign exchange to do so,” he said.

In a final remark, Fawad turned his attention to tax enforcement, asking: “Where is the FBR? If it simply examines the profits made by the sugar chain in the last five years and collects 35% tax on them, it could bridge a major gap in tax income.”

The government’s plan has also been criticised by the Pakistan Sugar Mills Association, which claimed that domestic sugar stocks are sufficient to meet demand until at least November. 

Meanwhile, sugar prices in the retail market continue to hover between Rs195 and Rs200 per kg, a sharp rise from Rs144/kg in the same week last year.