$500mn earned through export of surplus sugar, says PM Shehbaz

Pakistan has earned $500 million through the export of surplus sugar, said Prime Minister Shehbaz Sharif on Thursday.

“Timely decision to export sugar has generated $500 million in valuable foreign exchange for Pakistan,” said the PM, while chairing a meeting to review Pakistan’s economic situation and digitisation reforms in the Federal Board of Revenue (FBR), according to a statement released by his office.

In June this year, the Pakistan Sugar Mills Association (PSMA) suggested the government allow the export of up to one million tons of refined sugar in the first phase which will bring around $650-700 million in foreign exchange for the country and the rest of the 0.6 million tons of sugar be exported in two phases.

$120m earned through export of surplus sugar 1769

The government allowed PSMA to export 150,000 tons of sugar which in August was further extended by 100,000 tons and 40,000 tons of sugar export was allowed on a government-to-government basis to Tajikistan and on October 8, 2024, the government allowed the sugar industry to export 500,000 tons.

Last month, the PSMA sought the government’s permission to export more sugar, arguing that the country had over 1.08 million tons of surplus stocks at the start of the new crushing season.

Meanwhile, during the review meeting on Thursday, Shehbaz said that FBR’s digitisation marks a significant milestone in the government’s key economic reforms.

The premier stressed a data-driven strategy to enhance revenue collection, calling for measures to improve the taxation system.

PM directed strict action to ensure the implementation of revenue collection strategies.

According to the PMO statement, Shehbaz instructed authorities to complete key digitisation initiatives at FBR by 31 December 2024.

During the briefing, the PM was told that the complete digitisation of FBR’s value chain will be finalised by March 2025.

The prime minister noted that due to a strict crackdown on smuggled fuel and a significant reduction in petrol and diesel prices, Pakistan’s petroleum sales have risen to a 25-month high of 1.58 million tons in November 2024.

“Year-on-year petroleum sales in Pakistan increased by 15%, signalling a recovery in the energy market,” he said while calling for further intensified actions against petrol smuggling.

During the meeting, the participants were informed that the installation work of video analytics for the sugar industry had been completed. Moreover, the design work for video analytics in the cement industry is also finalised.

The prime minister directed the swift completion of video analytics installation in the cement industry.

The PM was briefed that a mobile app for small businesses’ digital invoicing will be completed by the end of December.

Moreover, a central assessment unit for faceless customs assessment has been established in Karachi, which will begin operations on 31 December 2024.