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Govt Withdraws Sugar Import Tender After IMF Refuses Tax Waiver; Ex-Mill Prices Surge
Govt withdraws sugar import tender after IMF rejects tax waiver. New bid issued for 50,000 tons instead of 300,000. Ex-mill sugar price hits Rs165/kg—up Rs25 since export approval.
ND
by News Desk
2025-07-15
Govt Withdraws Sugar Import Tender After IMF Refuses Tax Waiver; Ex-Mill Prices Surge

The federal government has withdrawn a major sugar import tender following the International Monetary Fund’s (IMF) refusal to waive taxes on imported sugar, Geo News reported on Tuesday.

The Trading Corporation of Pakistan (TCP) had initially issued a tender on July 11 for the import of 300,000 metric tons of sugar as part of a larger plan to import 500,000 tons. However, after objections from the IMF regarding the tax exemption on imports, the government has scaled back the plan and issued a revised tender for just 50,000 tons.

According to the latest tender notice, international suppliers have been invited to submit bids for the revised quantity by July 22.

The original import decision, which included a complete waiver of all duties, aimed to stabilize domestic sugar prices and ensure adequate supply. However, the IMF reportedly expressed serious concerns over the tax relief, leading to the rollback of the import plan.

Ex-Mill Sugar Price Sees Sharp Increase

In a parallel development, the ex-mill price of sugar has surged, despite the government's import move. Sources reveal that the ex-mill price has increased by Rs25 per kilogram compared to rates fixed during the initial sugar export approval phase.

·       On March 25, the government had fixed the ex-mill price at Rs159/kg.

·       By June 24, the price was readjusted downward to Rs140/kg.

·       As of now, the government and sugar mills have agreed on a new ex-mill price of Rs165/kg.

This Rs6/kg increase over the March price and Rs25/kg rise over the June rate indicates inflationary pressure in the sugar market, despite ongoing import and export activity.

Background on Sugar Export Policy

The government had earlier approved sugar exports in June 2024, allowing the shipment of 7.6 million tons of sugar between June and October 2024. The decision was seen as an effort to reduce surplus stocks and stabilize the industry, though it also raised concerns over domestic price inflation.

The Ministry of National Food Security officially announced the latest price adjustment on Monday, signaling further price volatility in the weeks ahead.

With both import and export policies under scrutiny and the IMF influencing fiscal decisions, the sugar market in Pakistan remains uncertain as consumers brace for higher prices ahead.

 
Tagged:

IMF

PakistanEconomy

SugarPrices

ImportPolicy

TCP
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