By Ghulam Haider
The latest sugar crisis in Pakistan is not merely an economic mishap or an unfortunate supply chain disruption — it is a deliberate and well-orchestrated heist, carried out not in the shadows, but in plain sight. The perpetrators are not faceless criminals but some of the most powerful figures in the country, operating with impunity under the guise of market dynamics. What should have been a basic commodity — an everyday staple — has once again manipulated into a vehicle for profiteering, hoarding, and systemic exploitation.
And, at the heart of this crisis are the sugar barons, a close-knit circle of influential mill owners and political elites who dictate the market to serve their own interests. This exclusive circle of influential mill owners, industrial tycoons, and political elites wields unchecked control over the sugar industry. They dictate production, regulate supply, and, when the opportunity arises, engineer artificial shortages to inflate prices. With their deep pockets and even deeper political connections, they ensure that regulatory mechanisms meant to protect consumers remain either toothless or complicit.
The pattern is all too familiar. First, the public is assured of surplus production, with government figures touting stability in supply. Then, overnight, sugar mysteriously vanishes from the market, hoarded by mill owners and middlemen awaiting the perfect moment to cash in on public desperation. Prices skyrocket, hitting ordinary consumers the hardest, while the culprits behind the crisis rake in billions. Investigations, if they occur, lead to half-hearted inquiries, token fines, or political posturing — never real accountability.
Over the past six years, Pakistan’s sugar mafia has brazenly pocketed PKR 25 billion in subsidies — funds that should have served the public good but instead lined the pockets of a few influential industrialists. This massive financial burden has been extracted from ordinary citizens, many of whom already struggle with rising inflation, economic instability, and dwindling purchasing power.
The subsidy mechanism, originally intended to stabilize sugar prices and support farmers, has been ruthlessly manipulated by powerful sugar mill owners. The sugar barons have exploited the system by artificially inflating sugar prices, creating artificial shortages, and securing undue financial relief from the government. While they amassed billions, the common consumer bore the brunt, paying exorbitant prices for an essential commodity.
The sheer scale of this financial plunder raises serious concerns about regulatory oversight and governance. Despite repeated inquiries and investigations, the sugar cartel continues to thrive, shielded by political patronage and legal loopholes. The government’s failure to curb this exploitation has not only cost the national exchequer billions but has also deepened public distrust in the state’s ability to safeguard economic justice.
The anatomy of a crisis
Sugar prices in Pakistan have skyrocketed in recent months, leaving consumers struggling to afford a basic necessity that should be both accessible and affordable. The retail price of sugar has surged past PKR 180 per kilogram in some areas, far exceeding the official government rate of PKR 145 per kilogram. This sharp increase has placed an additional financial burden on households already grappling with record inflation and economic uncertainty. As is often the case, the crisis has been attributed to so-called ‘shortages’ and ‘market forces’—the same justifications repeatedly used to mask artificial price manipulation.
However, a closer examination of the situation reveals a more troubling reality. Pakistan’s sugar industry is not governed by free market principles but is instead tightly controlled by a small group of politically connected industrialists. These sugar barons have transformed the sector into a private goldmine, wielding immense influence to manipulate production, hoard supplies, and engineer price surges. By creating artificial scarcities, they compel the government to intervene with subsidies and import relaxations, further enriching themselves while leaving ordinary citizens to bear the consequences.
Despite multiple inquiries and public outcry, meaningful action against this exploitation remains elusive. Regulatory bodies either lack the authority or the political will to hold these influential figures accountable. Until stringent measures are enforced to break this cartel’s grip, sugar prices will continue to rise, deepening economic hardship for millions of Pakistanis. The unchecked profiteering of a privileged few must no longer be allowed to dictate the fate of an entire nation.
Who controls sugar?
Pakistan’s sugar industry is a multi-billion-dollar enterprise controlled by a powerful group of industrialists with deep-rooted connections to the country’s political elite. These individuals, often holding influential positions in both government and business, exert immense control over sugar production, pricing, and distribution. Their dominance is so entrenched that every time a sugar crisis unfolds — whether it be artificial shortages, abrupt price hikes, or subsidy scandals — the same names resurface, highlighting the industry’s deep-seated nexus of wealth and political influence.
This monopoly not only manipulates market forces but also exploits government policies meant to support consumers and farmers. Instead of ensuring fair prices and stable supply, these sugar barons prioritize personal profit, leveraging their connections to secure hefty subsidies, evade accountability, and stifle competition. Reports have repeatedly exposed how these industrialists create artificial shortages to justify price increases, leaving ordinary Pakistanis to bear the financial burden of their profiteering.
Despite multiple inquiries and promises of reform, the government has largely failed to dismantle this well-entrenched cartel. Investigations into subsidy misappropriation and market manipulation often fizzle out without meaningful consequences, further emboldening these actors. This unchecked control over such a critical commodity not only deepens economic inequality but also erodes public trust in the state’s ability to enforce transparency and fair market practices.
Among them are some of the biggest names in Pakistan’s corporate and political corridors — names that repeatedly surface every time a sugar crisis emerges.
Jahangir Tareen – The kingmaker turned sugar baron
Jahangir Tareen, a former close aide to Imran Khan and a seasoned businessman, has long been a major player in the sugar industry. His JDW Group, which operates multiple sugar mills, holds significant market share and wields considerable influence over sugar pricing mechanisms. Despite repeated allegations of market manipulation, Tareen remains a formidable force, often dodging accountability thanks to his deep political connections.
The Sharif Family – Sugar moguls of Punjab
The Sharif family, best known for their political empire, also happen to be major stakeholders in Pakistan’s sugar industry. Their sugar mills, particularly in Punjab, have long been accused of benefiting from government subsidies and price manipulation. Critics argue that their dual role—as policymakers and industry players—creates a glaring conflict of interest that has contributed to the persistent sugar crises.
The Omni Group – Sindh’s sugar cartel
The Omni Group, owned by the Anwar Majeed family and closely linked to former President Asif Ali Zardari, has been at the centre of multiple corruption probes related to the sugar industry. With several sugar mills under its control, Omni Group has been accused of hoarding sugar supplies and using political leverage to secure favourable government policies.
These key players, along with several smaller yet equally influential mill owners, form the backbone of Pakistan’s sugar mafia. Their strategy is simple: restrict supply, manipulate prices, and ensure that government policies always tilt in their favour.
How the sugar mafia operates
The sugar crisis is not a consequence of natural market forces but a manufactured crisis created through deliberate and systematic tactics:
Artificial shortages: Sugar mill owners withhold stocks to create an artificial scarcity, causing prices to spike. This practice not only inflates profits but also forces the government to intervene with subsidies—ultimately benefiting the same sugar barons.
Export manipulation: In some cases, mill owners export sugar in large quantities, creating local shortages. Once prices rise domestically, they import sugar back at higher rates, making massive gains in the process.
Government subsidies and tax evasion: The industry benefits from billions in subsidies while dodging taxes through fraudulent bookkeeping and underreporting profits. A forensic audit in 2020 revealed that sugar mills underreported sales and manipulated accounts to claim undue government incentives.
Political influence and regulatory capture: Many of Pakistan’s sugar mill owners are either directly involved in politics or have deep ties with ruling parties. They use their influence to lobby against stringent regulations and ensure that any investigations against them remain toothless.
Government’s response: A cycle of inaction and complicity
Despite repeated inquiries and forensic audits exposing large-scale fraud in the sugar industry, concrete action against the perpetrators remains elusive. Government after government, regardless of political affiliation, has either looked the other way or actively facilitated the sugar mafia’s profiteering. The deep entanglement of Pakistan’s political elite with the sugar industry ensures that every so-called crackdown is nothing more than a theatrical exercise designed to pacify public outrage while protecting the vested interests of those in power.
The 2020 Sugar Inquiry Commission, which investigated market manipulation and corruption, uncovered damning evidence of excessive profiteering, tax evasion, and cartelization by leading sugar mills. The report laid bare the systematic exploitation of government subsidies, price fixing, and artificial shortages orchestrated by influential mill owners.
Yet, despite the strong findings, the government’s response was predictably weak—some token fines were imposed, a few officials were reshuffled, and temporary price caps were introduced. However, no major legal action was taken against the sugar barons who had pocketed billions at the expense of the public. Most of the accused continue to operate unscathed, their financial empires intact, their political connections shielding them from meaningful accountability.
More recently, the government has attempted to regulate prices by setting official sugar rates and imposing fines on hoarders. However, such measures have proven laughably ineffective against the entrenched power of the sugar mafia, which dictates market dynamics with impunity. Officials announce price caps, but within days, sugar disappears from the market, only to return at inflated prices. Meanwhile, the state looks on helplessly — or more accurately, complicitly — as middlemen, wholesalers, and mill owners collude to extract billions from the pockets of ordinary Pakistanis.
Until the government severs its ties with the sugar barons and enforces strict regulatory measures with real consequences, this exploitative cycle will continue. The people of Pakistan will remain at the mercy of an industry that thrives not on free market competition but on political patronage, corruption, and unchecked greed.
The real cost: A nation held hostage
While the sugar barons continue to amass immense wealth through price manipulation and hoarding, the average Pakistani bears the crushing burden of this systemic exploitation. The sugar crisis is not merely an economic challenge—it is a social catastrophe that affects millions, deepening inequality and worsening the daily struggles of ordinary citizens.
For low-income households, the soaring price of sugar is not an isolated issue but a symptom of a broader crisis of affordability. Families already struggling to put food on the table now face yet another essential commodity slipping beyond their reach. Food inflation, exacerbated by the sugar mafia’s unchecked profiteering, has made even the most basic grocery items unaffordable. The working class, with stagnant wages and few economic opportunities, finds itself caught in an unending battle against rising costs, while the ruling elite remains indifferent to their plight.
The ripple effects extend beyond households and into industries that depend heavily on sugar. The food and beverage sector, already burdened by inflation and supply chain disruptions, faces increased production costs, leading to further price hikes in consumer goods. Small businesses—particularly those in confectionery, baking, and dairy production—are struggling to stay afloat amid escalating costs. Many are forced to either cut production or pass on the costs to consumers, making staple foods even more expensive.
Even more troubling is the government’s failure to intervene meaningfully. Instead of implementing stringent regulations and dismantling the sugar cartel, successive administrations have either remained silent or actively facilitated the crisis through inaction and preferential policies. The very institutions meant to protect consumers appear to be working in favour of the exploiters, leaving the nation at the mercy of a few powerful industrialists.
The cost of this exploitation is more than just inflated sugar prices—it is the systematic erosion of economic stability, the destruction of small businesses, and the deepening of poverty. Until the government breaks free from the influence of the sugar mafia, Pakistan will remain hostage to an elite-driven economy that thrives on the suffering of its people.
Breaking the sugar mafia’s grip: Is reform possible?
Dismantling Pakistan’s sugar mafia requires bold, systemic reforms — something successive governments have failed to achieve. The following measures could break the cycle of exploitation:
Independent regulatory oversight: Establishing a truly independent body to regulate the sugar industry, free from political influence, is crucial. The Pakistan Competition Commission, tasked with curbing monopolies, needs stronger enforcement powers to take on industrial cartels.
Transparent auditing and accountability: Sugar mills must be subjected to transparent audits, with severe penalties for tax evasion and fraudulent practices. Government inquiries should not merely serve as political tools but lead to real legal consequences.
Ending political conflicts of interest: Politicians who own sugar mills should be required to divest from the industry to prevent policy manipulation. Strict conflict-of-interest laws are necessary to prevent lawmakers from crafting policies that benefit their own businesses.
Strengthening consumer protection laws: Legal frameworks should empower consumers by enforcing price caps and cracking down on hoarding and artificial shortages.
The battle against Pakistan’s economic predators
The sugar crisis is not just an economic issue — it is a reflection of Pakistan’s deep-rooted governance failures and the unchecked power of its economic elites. The consequences of this exploitation extend far beyond inflated grocery bills. Small businesses struggle to stay afloat, farmers are underpaid or NOT paid despite soaring market prices, and consumers are forced to allocate an increasing share of their income to basic survival. As long as the same powerful families and business empires continue to control the market, the cycle of artificial shortages, manipulated prices, and consumer exploitation will persist.
For Pakistan to break free from the grip of the sugar mafia, it will take more than just public outrage or temporary government interventions. It will require a fundamental restructuring of how economic power is distributed and, more importantly, the political will to hold the untouchable barons accountable. Until then, the people of Pakistan will continue to pay the price for the greed of a few.
Yet, as history suggests, the cycle is bound to repeat unless there is a fundamental restructuring of the sugar industry — one that dismantles monopolies, enforces transparency, and puts public welfare above elite greed. Until then, Pakistan’s sugar crises will remain less an economic problem and more a political racket—one that keeps the rich richer and the common man forever at their mercy.
Pakistan needs robust regulatory oversight, stricter enforcement of anti-cartel laws, and depoliticized economic governance and a decisive action, otherwise the sugar industry will remain a symbol of elite capture at the expense of the common citizen.
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