Finance Minister Muhammad Aurangzeb on Tuesday said that due to stringent measures against cross-border smuggling, sugar has been exported instead of being smuggled to Afghanistan.
Addressing a press conference alongside Federal Minister for Information, Attaullah Tarar, the finance minister highlighted the government’s reform agenda.
“This is the first time that sugar has not been smuggled to Afghanistan, it has been exported,” he said, adding that the country need “every single dollar” to balance its current account.
Aurangzeb informed that on the directives of the prime minister the Federal Board of Revenue (FBR) has initiated an improved production monitoring system in the sugar sector.
“Due to these measures, sugar is being sold to genuine distributors in the supply chain rather than to hoarders,” he said.
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He said that since the implementation of the monitoring system, 10 shot hoppers and six sugar mills have been sealed. “Penalties to the tune of Rs125 million have been imposed to date,” he added.
The finance minister informed that the government collected Rs24 billion in sales tax on sugar during the first two months of 2025, as compared to Rs15 billion in the same period last year.
“Which means it is a growth of 54%,” he said.
Aurangzeb said that the government is confident that the sugar requirement of the country in the current season “is in a good place, and we should be able to manage it as we go forward”.
Apart from the sugar sector, the finance minister reiterated that the country is achieving economic stability.
“The remittance inflow of $3.1 billion for February is a record number for any given month,” said Aurangzeb, while lauding the role of Pakistani diaspora working abroad.
“Due to their efforts, we will close the fiscal year at an all-time high. The government has estimated to collect $36 billion in remittance inflows this year,” he said.
According to data released by the State Bank of Pakistan (SBP) on Monday, the inflow of overseas workers’ remittances into Pakistan stood at $3.1 billion in February 2025, 3.8% up from $3 billion in January 2025.
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Remittances increased by 38.6% year over year, compared to $2.25 billion recorded in the same month last year.
Citing various economic surveys, including Gallup, PricewaterhouseCoopers and SBP, Aurangzeb said that all surveys are “pointing to higher business and consumer confidence, which is being reflected with an uptick in economic activity”.
He said investor confidence has improved as the Pakistan Stock Exchange (PSX) attracted 7 IPOs last year, as compared to an average of just 4 IPOs in the last ten years.
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