The Pakistan Sugar Mills Association (PSMA) on Monday called upon the government to immediately allow the export of surplus sugar and to progress towards the complete deregulation of the sector.
The group further warned that ongoing restrictions are inflicting significant financial losses on millers, despite a year of abundant production.
During a press conference, PSMA Chairman Ch Zaka Ashraf, along with other representatives, emphasised that the sugar industry, which is the second largest agro-based sector in Pakistan after textiles.
The industry also plays an essential role in the national economy, generating over Rs1,000 billion in annual economic activity across agriculture, transport, and related industries.
Furthermore, the sector contributes approximately Rs 300 billion in taxes and provides import substitution valued at around USD5 billion each year.
Sugar industry remains ‘over-regulated’
They argued that although the sugar industry is one of the most documented and compliant sectors, it remains “over-regulated,” especially in the domestic market where provincial governments persist in setting ex-mill prices, controlling supply mechanisms, and enforcing payment timelines.
“While nearly 70% of sugar used in commercial and industrial sectors is deregulated, the portion serving domestic consumption is still heavily regulated, leading to market distortions,” the PSMA officials added.
The PSMA highlighted production statistics, indicating that by March 25, 2026, sugar production had achieved roughly 7.5 million tons, with projections suggesting it could reach 7.7 million tons by the conclusion of the crushing season.
When accounting for an extra 100,000 tons from beetroot, the total sugar supply is expected to be 8.071 million tons.
It is important to note that in light of an estimated domestic consumption of 7.02 million tons over a period of 13 months, the nation is expected to experience a surplus of approximately 1.05 million tons.
Read more: Pakistan posts $2.48bn exports in February amid mixed sector performance
