Governament directs authorities to launch investigation against 'sugar mafia' [Update Post #312]

[Abdullah719]

Supreme Court suspends SHC verdict on sugar inquiry commission report

(Karachi) Supreme Court has suspended the Sindh High Court’s (SHC) verdict of declaring the sugar inquiry commission and its report null and void, media reported on Wednesday

A three-judge bench of the apex court, headed by Chief Justice Gulzar Ahmed, allowed the relevant institutions to proceed with their investigation into the sugar scandal in compliance with the report.

The top court gave the ruling on a petition filed by the federal government challenging the SHC judgment.

On August 17, the SHC declared report of Sugar Inquiry Commission null and void. The court accepted plea of owners of sugar mills and ordered that government can launch inquiry against the mills but report of commission should not influence the investigation.

The inquiry commission had claimed that sugar mills belonging to the families of the country’s top politicians including PML-N’s Shehbaz Sharif, PTI’s Jahangir Tareen and Khusro Bakhtiar, PML-Q’s Moonis Elahi and PPP’s Asif Ali Zardari were among the beneficiaries of the crisis.

In its forensic report – issued on May 21 – the commission had accused the sugar mill owners of earning illegal profits to the tune of billions of rupees through unjustified price hikes, benami transactions, tax evasion, misuse of subsidy and purchasing sugarcane off the books.

https://www.brecorder.com/news/4001...hc-verdict-on-sugar-inquiry-commission-report

 

[Bewal Express]

Supreme Court suspends SHC verdict on sugar inquiry commission report

(Karachi) Supreme Court has suspended the Sindh High Court’s (SHC) verdict of declaring the sugar inquiry commission and its report null and void, media reported on Wednesday

A three-judge bench of the apex court, headed by Chief Justice Gulzar Ahmed, allowed the relevant institutions to proceed with their investigation into the sugar scandal in compliance with the report.

The top court gave the ruling on a petition filed by the federal government challenging the SHC judgment.

On August 17, the SHC declared report of Sugar Inquiry Commission null and void. The court accepted plea of owners of sugar mills and ordered that government can launch inquiry against the mills but report of commission should not influence the investigation.

The inquiry commission had claimed that sugar mills belonging to the families of the country’s top politicians including PML-N’s Shehbaz Sharif, PTI’s Jahangir Tareen and Khusro Bakhtiar, PML-Q’s Moonis Elahi and PPP’s Asif Ali Zardari were among the beneficiaries of the crisis.

In its forensic report – issued on May 21 – the commission had accused the sugar mill owners of earning illegal profits to the tune of billions of rupees through unjustified price hikes, benami transactions, tax evasion, misuse of subsidy and purchasing sugarcane off the books.

https://www.brecorder.com/news/4001...hc-verdict-on-sugar-inquiry-commission-report

How corrupt is the SHC- All these high courts are full of criminal judges under the control of the mafia.

 

[MenInG]

LAHORE: As Federal Investigation Agency has summoned PTI leader Jehangir Tareen on Saturday in the sugar scam investigation, the latter says investigation in a ‘frivolous case’ has been initiated against him.

The FIA Lahore’s combined investigation team is probing the sugar scam. It has also summoned Tareen’s son Ali Tareen for Friday (today) to record his statement. Jehangir Tareen and his son have been in the United Kingdom for the last few months and it is likely that they will submit replies through their lawyers.

The FIA has sought details about Tareen’s assets here and abroad, bank transactions, especially transfer of money abroad, bank accounts of his family members and his employees and the sugar-related transactions of his firm JDW.

On the sugar crisis, the inquiry committee headed by FIA Director General Wajid Zia had prepared the report in April last. It had probed hike in prices and the subsidy obtained by sugar barons during last year in particular and past four years in general.

The report revealed that two main groups had obtained maximum benefit during the crisis; one of the groups, JDW, belonging to Mr Tareen which has six sugar mills, obtained 12.28 per cent of the total export subsidy amounting to Rs3.058 billion during 2015-18. PPP leader Makhdoom Syed Ahmed Mehmood is a partner in this group.

The report said that during 2018-19, Mr Tareen’s companies exported 17.24pc of the total production of sugar and availed 22.71pc of total export subsidy, amounting to Rs561million.

In a statement, Mr Tareen said: “It is a frivolous case. What is the relation of old transactions (of my company) in the rise of the current sugar price increase?” He said there were more than 80 sugar mills in the country but only his mills were being targeted.

The former general secretary of PTI regretted that his son was unnecessarily dragged in this case and he got nothing to do with the JDW affairs/management.

https://www.dawn.com/news/1580270/jehangir-tareen-rejects-fia-summons

 

[MenInG]

Prime Minister Imran Khan on Thursday assured the nation that in the future, the government will not allow the sugar cartel to tamper with prices as he addressed rising inflation in the country.

The premier was speaking at the launching ceremony of the Naya Pakistan Certificate, which offers an investment opportunity to overseas Pakistanis with a Roshan Digital Account.

The ceremony was attended by notable government officials including Adviser to the Prime Minister on Finance Abdul Hafeez Sheikh, Minister for Industries Hammad Azhar and Minister for Economic Affairs Makhdoom Khusro Bakhtiar, among others.

In his address, Prime Minister Imran said that it was "unfortunate" that there was a sugar cartel in the country, adding that the competition commission had disclosed the practice and the government had taken steps to ensure that the industry does not manipulate the prices in future.

The prime minister acknowledged that prices of food commodities had increased but said that "all other indicators [of the economy] are positive". He said that it was not just Pakistan that was suffering from food inflation; neighbouring India was also facing the same challenge.

The reason behind the increase in food prices, he said, was that "supply chains had been affected due to coronavirus".

"On top of that, two of our wheat crops were affected due to climate change as it rained at the wrong time. [Therefore] our output was less than what we were expecting," he said.

He told participants of the ceremony that there had been no increase in the country's debts in the past four months. Furthermore, he said, Pakistan's current account balance in the previous quarter had gone into surplus for the first time in 17 years. He regretted that the development "had not been highlighted" by the media.

The premier also pointed out that the inflow of remittances has been on the rise due to "excellent incentives by the State Bank" and urged the central bank's governor, Reza Baqir, to continue efforts to ensure that overseas Pakistanis stack their money in Pakistan. The Naya Pakistan Certificate, the prime minister said, is an important step in this regard as it offers returns to overseas residents at a time when interest rates across the world had dropped.

He said that due to the increase in remittances, the rupee was getting stronger and the economy was stabilising "without any spending" by the government. The premier said that the economic situation of Pakistan would have been much better if the incumbent administration "did not have to bear the burden of past governments'" policies.

Earlier today, SBP data had revealed that remittances during the month of October had risen 14.1 per cent year-on-year to $2.3 billion, clocking in above the $2bn mark for the fifth consecutive month.

https://www.dawn.com/news/1590013/s...-manipulate-prices-in-future-assures-pm-imran

 

[MenInG]

LAHORE: The Federal Investigation Agency (FIA) on Sunday registered cases against estranged Pakistan Tehreek-i-Insaf leader Jahangir Tareen, his son, Pakistan Muslim League-Nawaz (PML-N) president Shehbaz Sharif and his two sons and others in the multibillion rupee sugar scam under the money laundering, fraud and other charges.

According to official sources, the FIA’s investigation against federal Minister of Economic Affairs Khusro Bakhtiar and his family members in this scam is also under way and they may be summoned soon.

The sugar scam probe has been conducted under the supervision of the FIA’s Punjab Director Mohammad Rizwan.

The FIR has been registered against Jahangir Tareen, his son Ali Tareen under sections 406 (criminal breach of trust), 420 (cheating of public shareholders) and 109 of the Pakistan Penal Code and r/w 3/4 of Anti Money Laundering Act.

Inquiry against Khusro, family under way

Opposition Leader in National Assembly Shehbaz Sharif and his sons — Hamza and Salman — have been booked under sections 419, 420, 468, 471, 34 and 109 — financial fraud, impersonation and forgery — of the PPC and 5(2) and 5(3) — criminal misconduct — of Prevention of Corruption Act and r/w 3/4 of Anti Money Laundering Act.

According to sources, the FIA will record their statements in person before reaching a decision based on evidence whether to arrest them.

“Jahangir Tareen and his son Ali, who earlier had skipped FIA hearing because they were in London, will be re-summoned to record their statements. An FIA team will record the statements of Shehbaz and Hamza in (Kot Lakhpat) jail where they are on judicial remand in NAB’s money laundering and income beyond means cases. Salman Shehbaz, who is absconding in the UK, will be summoned. And in case of his non-appearance, the process of issuing his red warrants will be initiated,” an official source told Dawn.

When Mr Tareen returned early this month after about a six-month stay in the United Kingdom, opposition PML-N had alleged that he was back under ‘some deal’. His statement that he would help the government in its endeavours to control sugar shortage and price hike was construed in the political circles that his relations with his ‘old friend’ (Prime Minister Imran Khan) are on the

His son Ali returned too at a time when his cricket team — Multan Sultans — is taking part in the play-offs stage of the Pakistan Super League (PSL).

The FIR says during the course of inquiry it was noted that an amount of at least Rs1.2bn was overpaid (transferred by Jahangir Tareen) from the accounts of a listed public limited company (JDW Sugar Mills Ltd) to another company (JK Forming System Ltd, hereinafter JKFSL owned by his children) while purchasing the assets of the latter (JKFSL) at an exorbitant non-arm’s length purchase price of Rs4.35bn in November 2013. “During the course of present inquiry, it has transpired that the JDW Sugar Mills recorded a false disclosure in its annual audited financial statement of 2014,” it says.

Earlier, Mr Tareen in his defence had said all transactions were financially prudent under the circumstances in which they were carried out. All JDW personnel had cooperated with the Joint Investigation Team and the Combined Investigation Team at every stage and provided documentary evidence to establish the transparent, legitimate, and bona fide nature of each transaction, he added.

The separate FIR against Shehbaz Sharif, Hamza and Salman says during the course of the FIA inquiry, it was learnt that total deposits amounting to over Rs25bn (2008-18), identified so far, were received in bank accounts of various low-wage employees of Ramzan Sugar Mills and Al-Arabia Sugar Mills and accounts of fake companies set up and controlled by the Sharif group.

ARTICLE CONTINUES AFTER AD

“The low-wage employees of the Sharif group’s Ramzan Sugar Mills and Al-Arabia Sugar Mills have admitted during the inquiry that these accounts were opened and operated for the personal/secret transactions of Salman Shehbaz on the instruction of CFO of the Sharif group Mohammad Usman. Mushtaq Cheeni has provided secret ledgers as a proof to show that the money from undisclosed sale of sugar deposited into these accounts is only Rs3.95bn implying therein that the source of remaining funds is extraneous to sugar business and can best be explained by Shehbaz Sharif and his sons and their mills officers who managed these accounts,” the FIR says.

The FIR further says the inquiry has demonstrated that Shehbaz Sharif aided and abetted by his sons — Hamza and Salman — have been found to be involved in amassing wealth (pecuniary resources) disproportionate to their known sources of income.

Published in Dawn, November 16th, 2020

 

[MenInG]

<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">Due to effective intervention by Govt, ex-mill price of sugar is down by Rs 20/kg within 20 days. Distribution of imported sugar at control rates & timely start of crushing season also ensured. I have asked provinces to ensure fair & swift cane payments are made to farmers.</p>— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1334125056092491776?ref_src=twsrc%5Etfw">December 2, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[MenInG]

<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">MashaAllah Sugar is selling at a national average of Rs 81 per kg vs Rs102 per kg a month back. I want to congratulate my team for bringing the sugar prices down through a multi pronged strategy.</p>— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1337651799264792576?ref_src=twsrc%5Etfw">December 12, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[KoyoAli]

PM Imran congratulates economic team for reduction in sugar price

ISLAMABAD: Prime Minister Imran Khan on Saturday congratulated the government's economic team for reducing sugar prices in the country through a "multi-pronged strategy".

In a tweet on Saturday, the premier said, “sugar is selling at a national average of Rs 81 per kg vs Rs102 per kg a month back”.


Despite Prime Minister Imran Khan’s interest in controlling prices of wheat, wheat flour, and sugar, the rates have remained high this year.

However, in the case of wheat and wheat flour, the Pakistan Bureau of Statistics (PBS) reported a reduction in prices on a monthly basis but the rates remained higher on a yearly basis. The federal government’s decision to import and export wheat and sugar have a direct bearing on prices in the domestic market.

The PBS reported that wheat prices increased 36.6% in November over the same month a year ago in urban areas and 37.9% in rural areas. Prices of wheat flour rose 19.6% in rural areas.

Sugar prices increased 35.8% in November in cities and 42.5% in villages over a year ago, according to the national data collecting agency.

The average inflation rate in the first five months of the current fiscal year (July-November) stood at 8.8%, according to PBS. The average rate of inflation in urban areas was 7.4% and in rural areas, it was 10.9%, according to PBS.

 

[Last Monetarist]

https://www.dawn.com/news/1614453/tareen-hamza-face-arrest-in-sugar-scandal

The Federal Investigation Agency (FIA) has detected Rs110 billion earning by the sugar mafia during the last one year through ‘speculative pricing’ and on Wednesday constituted 20 teams to lay hands on those involved in it.

Also in the day, the FIA anti-corruption circle registered an FIR against estranged PTI leader Jahangir Tareen’s JDW group and Gourmet Bakers & Sweets Pvt Ltd, Lahore, under sections 420, 468, 471 and 109 of the Pakistan Penal Code (PPC), read with sections 3/4 of Anti-Money Laundering Act 2010.

According to the FIR, during the course of inquiry against the sugar mafia, “it has transpired that sugar industry barons, sugar-brokers & their satta-agents (speculative pricing players), in active connivance with sugar-mills, have transformed into a clandestine sugar satta-mafia and are operating in a collusive but secret-mode, especially through electronic means/ WhatsApp groups to dishonestly and fraudulently maneuver, manipulate and artificially hike sugar prices, amidst hoax of impending sugar-stocks shortages (while sugar-stocks are lying ‘unsold’ or ‘sold/un-lifted’ in mills & godowns and demand-supply gap is artificial)”.

The inquiry reveals “the satta-mafia had already fraudulently ramped-up the (speculative) ex-mill price by Rs20/kg in last one year (from Rs70/kg on Feb 11, 2020 to Rs90 per kg on March 21, 2021; they are now conspiring to pump it upwards of Rs110 per kg in Ramzan.”

During the inquiry it was revealed that “even the leading registered businesses in the country, like Gourmet Bakers & Sweets Pvt Ltd Lahore, are being facilitated by satta-mafia agents to commit huge accounting & tax-frauds in a very organized manner by concealing their actual sugar consumption & consequently business turnover.”

The FIR says Malik Abad Ali (speculative pricing player) was intercepted and interrogated. “Digital evidence (two smartphones & one HDD), one ledger pertaining to satta (speculatively pricing) and 45 miscellaneous ledgers were taken into custody through seizure memo. Review of manual ledgers and communication on digital media (cyber forensic-analysis to retrieve any deleted data is underway) seized from Malik Abad Ali revealed that innumerable secret WhatsApp Satta Groups were being operated by the Satta Mafia. Examination of seized digital media (cyber forensic-analysis underway), ledgers and on-spot interrogation of Malik Abad Ali (key satta-player) during search & seizure also revealed clearly that he was one of the main satta players actively involved in sugar satta, in connivance with and on behalf of various sugar-industry barons and others. He also works in active connivance with JDW Sugar Group but also works for Ashraf, Sheikhoo and other sugar-mills. He operates in WhatsApp Satta Groups through front-men/ other satta-agents Sajid Ali s/o Maqbool Hussain and Asad Pervaiz Butt s/o Khalid Pervaiz Butt.”

The FIR says as Malik Abad Ali has also been abetted and assisted by owners and officials of various sugar mills, their role may be ascertained during the course of investigation.

“Action is being taken against major sugar groups, including those led by Jahangir Tareen and Opposition Leader in Punjab Assembly Hamza Shehbaz, under speculative pricing, money laundering and other charges,” an official told Dawn.

The FIA Lahore has been conducting an investigation into the multi-billion sugar scam since last year.

“The sugar mafia has made Rs110bn in one year in speculative pricing and to hide this income a number of secret and fake bank accounts were opened,” the official said.

He further said the FIA had taken 32 mobile phones and laptops in possession from some ‘sugar pricing players’ and collected relevant evidence against the major groups. “There were reports that the sugar mafia wanted to further increase sugar price during Ramazan,” he said.

The FIA Lahore in November last had registered cases against Jahangir Tareen, his son Ali Tareen, PML-N resident Shehbaz Sharif, his sons Hamza and Suleman and others in the sugar scam under money laundering, fraud and other charges.

An FIR was registered against Jahangir Tareen and Ali Tareen under sections 406 (criminal breach of trust), 420 (cheating of public shareholders) and 109 of the Pakistan Penal Code (PPC), read with section 3/4 of Anti Money Laundering Act.

Shehbaz Sharif, Hamza and Suleman were booked under sections 419, 420, 468, 471, 34 and 109 (financial fraud, impersonation and forgery) of the PPC and 5(2) and 5(3) (criminal misconduct) of Prevention of Corruption Act, read with section 3/4 of Anti Money Laundering Act.

The FIA had recorded statement of Hamza while Suleman is absconding in the UK. Tareen’s lawyer had responded to the FIA’s queries.

The FIR says during the course of inquiry, it was noted that an amount of at least Rs1.2bn was overpaid (transferred by Jahangir Tareen) from the accounts of a listed public limited company (JDW Sugar Mills Ltd) to another company (JK Forming System Ltd, hereinafter JKFSL, owned by his children) while buying the assets of the latter (JKFSL) at an exorbitant non-arm’s length purchase price of Rs4.35bn in November 2013. “During the course of present inquiry, it has transpired that the JDW Sugar Mills recorded a false disclosure in its annual audited financial statement of 2014,” it says.

A separate FIR against Shehbaz Sharif, Hamza and Suleman says during the course of the FIA inquiry, it was learnt that total deposits amounting to over Rs25bn (2008-18), identified so far, were received in bank accounts of various low-wage employees of Ramzan Sugar Mills and Al-Arabia Sugar Mills and accounts of fake companies set up and controlled by the Sharif group.

“The low-wage employees of the Sharif group’s Ramzan Sugar Mills and Al-Arabia Sugar Mills have admitted during the inquiry that these accounts were opened and operated for the personal/secret transactions of Suleman Shehbaz on the instruction of CFO of the Sharif group Mohammad Usman. Mushtaq Cheeni has provided secret ledgers as a proof to show that the money from undisclosed sale of sugar deposited into these accounts is only Rs3.95bn implying therein that the source of remaining funds is extraneous to sugar business and can best be explained by Shehbaz Sharif and his sons and officers of their mills who managed these accounts,” the FIR says.

It further says the inquiry has demonstrated that Shehbaz Sharif aided and abetted by his sons Hamza and Salman has been found to be involved in amassing wealth (pecuniary resources) disproportionate to their known sources of income.

 

[Bewal Express]

https://www.dawn.com/news/1614453/tareen-hamza-face-arrest-in-sugar-scandal

For PK to prosper the Sugar mafia has to be destroyed. These crooks have their fingers in every pie.

 

[saeedhk]

Imran has been an utter failure. He is all hot air; we should not believe a word that comes out of his mouth. People are cursing him day and night because the majority of Pakistanis have become poorer under his rule due to inflation.

 

[OMB]

Pakistan to import sugar, cotton from India: Hammad Azhar

Federal Finance Minister Hammad Azhar said on Wednesday that the government has decided to import 0.5 million metric tonnes of sugar from India.

He further said that the sugar will be imported by the private sector.

Addressing a presser at the Press Information Department (PID) this afternoon, Azhar said, "Pakistan will also open the trade of cotton with India."

He added that the government has to make tough decisions for the country in view of a given situation.

“The basis of our decisions will be the interest of the country and its people, he maintained.”

“The price of the commodity in India is lower than what it is in Pakistan and this is the reason behind the decision,” Azhar explained.

Regarding the import of cotton, the minister said, “The import of cotton from India for small industries will take place until the month of June."

“In comparison, there’s a Rs15 to Rs20 difference in the price of sugar in the two countries.”

The minister added that all government departments were working in coordination to provide subsidies to the masses.

The government will also release sukuk bond, he said, but declined to issue a release date as of now.

“Pakistan is witnessing stability in the current account deficit and foreign exchange reserves,” he observed.

Regarding his appointment, he said that he will remain in contact with the members of the Parliament.

Petrol prices

Meanwhile, the minister announced to slash the price of petrol and diesel by Rs1.5 per litre and Rs3 per litre, respectively

According to Azhar, the benefit of the uptick in the value of rupee doesn’t come at once, saying Pakistan was making a steady progress.

On Tuesday, the currency maintained its uptrend and strengthened to a fresh 22-month high at Rs153.09 against the US dollar in the inter-bank market as the country began the process to raise $2.5 billion by selling 5 to 30-year Eurobonds in world markets.

“We have made the State Bank autonomous and our decisions are based on the interest of masses.”

https://tribune.com.pk/story/2292464/pakistan-to-import-sugar-cotton-from-india-hammad-azhar

 

[OMB]

FIA issues notice to sugar mill owned by federal minister Khusro Bakhtiar's brother

The Federal Investigation Agency (FIA) on Thursday issued a notice to the sugar mill of Makhdoom Shehryar, the brother of the Federal Minister for Economic Affairs Khusro Bakhtiar, for allegedly selling sugar through the practice of satta (price-fixing through collusion).

According to the notice, Makhdoom Shehryar has been summoned at the FIA's office on April 15, 2021, and he has been ordered to bring the documents related to the selling of sugar through satta.

Makhdoom has also been asked to submit the explanation of the procedure adopted by his sugar mill to sell and book sugar through satta.

Related items
FIA registers 10 cases against sugar mafia after unearthing gambling, money laundering network
IHC vacates stay order, allows govt to move against 'sugar mafia'
PM's promise to go after sugar mafia 'soon to be fulfilled': Shibli Faraz
Per the notice, the administration and shareholders have been accused of being involved with the satta mafia, adding that the latter is minting illegal money with the help of sugar mill owners.

As the matter surfaced, Minister Khusro Bakhtiar said that he previously had shares in the company but does not have them anymore.

FIA arrests 7 for alleged involvement in sugar price hike

Last month, the Commercial Banking Circle of the FIA had arrested seven people allegedly involved with the sugar satta mafia which persistently increased sugar prices by creating an artificial shortage of the commodity, Geo News reported Sunday.

The FIA had recently launched a crackdown against the sugar satta mafia for its involvement in money laundering. The suspects, who were arrested, allegedly colluded with the sugar mill owners to create the situation. During an operation, three brokers — identified as Dayal Das, Santosh Kumar, and Raj Kumar — were arrested first.

In the second operation, four more people were taken into custody for their alleged involvement in the sugar scandal.

According to the FIA, the accused had created different social media forums and fake bank accounts to carry out illegal activities.

Sources at the FIA said that the accused were involved in creating an artificial shortage of sugar because of which the price of the commodity had skyrocketed.

Currently, there are two cases registered against the accused at the Karachi branch of the FIA which were filed in accordance with the Anti-Money Laundering Act.

To carry out further investigations, the FIA has also obtained a remand for the arrested individuals from the court.

FIA registers 10 cases against sugar mafia after unearthing satta, money laundering network
The FIA had also exposed the sugar mafia's involvement in monetary fraud, speculative trade, and money laundering after obtaining strong evidence.

The sugar mafia earned Rs110 billion in a year by increasing the sugar prices from Rs70 to Rs90 via satta and stashed the illegally-earned money in fake and secret accounts, the FIA said.

Almost all the major sugar-producing groups — some of which belong to major political parties — including Sharif Group, Tareen Group, Alliance Group, Almoiz Thal Group and Hamza Group, were found to be involved in satta, the agency added.

FIA Director Lahore Dr Muhammad Rizwan, while talking to the media on Thursday about the operations against the sugar mafia, said that solid evidence has come to light in the operations via data retrieved from 32 digital devices belonging to the sugar mafia.

He said owing to the sheer volume of the data gathered, "thousands of books" can be printed.

Rizwan said that 10 cases have been registered against the sugar mafia while 40 people have been identified who "were all in touch with each other".

The FIA had decided to investigate and scrutinise the accounts of prominent members of the sugar satta mafia, and then arrest them after registration of cases under the Anti-Money Laundering Act, said the director.

Rizwan said of the "satta" mafia groups, 10 are from Lahore, while others are located in Multan, Hasilpur, Khanewal, and Bahawalpur.

It was also revealed that the sugar mafia conspired to further increase sugar prices through satta in the month of Ramazan.

https://www.geo.tv/latest/344171-fia-issues-notice-to-sugar-mill-of-federal-minister-khusro-bakhtiars-brother

 

[Bewal Express]

FIA issues notice to sugar mill owned by federal minister Khusro Bakhtiar's brother

The Federal Investigation Agency (FIA) on Thursday issued a notice to the sugar mill of Makhdoom Shehryar, the brother of the Federal Minister for Economic Affairs Khusro Bakhtiar, for allegedly selling sugar through the practice of satta (price-fixing through collusion).

According to the notice, Makhdoom Shehryar has been summoned at the FIA's office on April 15, 2021, and he has been ordered to bring the documents related to the selling of sugar through satta.

Makhdoom has also been asked to submit the explanation of the procedure adopted by his sugar mill to sell and book sugar through satta.

Related items
FIA registers 10 cases against sugar mafia after unearthing gambling, money laundering network
IHC vacates stay order, allows govt to move against 'sugar mafia'
PM's promise to go after sugar mafia 'soon to be fulfilled': Shibli Faraz
Per the notice, the administration and shareholders have been accused of being involved with the satta mafia, adding that the latter is minting illegal money with the help of sugar mill owners.

As the matter surfaced, Minister Khusro Bakhtiar said that he previously had shares in the company but does not have them anymore.

FIA arrests 7 for alleged involvement in sugar price hike

Last month, the Commercial Banking Circle of the FIA had arrested seven people allegedly involved with the sugar satta mafia which persistently increased sugar prices by creating an artificial shortage of the commodity, Geo News reported Sunday.

The FIA had recently launched a crackdown against the sugar satta mafia for its involvement in money laundering. The suspects, who were arrested, allegedly colluded with the sugar mill owners to create the situation. During an operation, three brokers — identified as Dayal Das, Santosh Kumar, and Raj Kumar — were arrested first.

In the second operation, four more people were taken into custody for their alleged involvement in the sugar scandal.

According to the FIA, the accused had created different social media forums and fake bank accounts to carry out illegal activities.

Sources at the FIA said that the accused were involved in creating an artificial shortage of sugar because of which the price of the commodity had skyrocketed.

Currently, there are two cases registered against the accused at the Karachi branch of the FIA which were filed in accordance with the Anti-Money Laundering Act.

To carry out further investigations, the FIA has also obtained a remand for the arrested individuals from the court.

FIA registers 10 cases against sugar mafia after unearthing satta, money laundering network
The FIA had also exposed the sugar mafia's involvement in monetary fraud, speculative trade, and money laundering after obtaining strong evidence.

The sugar mafia earned Rs110 billion in a year by increasing the sugar prices from Rs70 to Rs90 via satta and stashed the illegally-earned money in fake and secret accounts, the FIA said.

Almost all the major sugar-producing groups — some of which belong to major political parties — including Sharif Group, Tareen Group, Alliance Group, Almoiz Thal Group and Hamza Group, were found to be involved in satta, the agency added.

FIA Director Lahore Dr Muhammad Rizwan, while talking to the media on Thursday about the operations against the sugar mafia, said that solid evidence has come to light in the operations via data retrieved from 32 digital devices belonging to the sugar mafia.

He said owing to the sheer volume of the data gathered, "thousands of books" can be printed.

Rizwan said that 10 cases have been registered against the sugar mafia while 40 people have been identified who "were all in touch with each other".

The FIA had decided to investigate and scrutinise the accounts of prominent members of the sugar satta mafia, and then arrest them after registration of cases under the Anti-Money Laundering Act, said the director.

Rizwan said of the "satta" mafia groups, 10 are from Lahore, while others are located in Multan, Hasilpur, Khanewal, and Bahawalpur.

It was also revealed that the sugar mafia conspired to further increase sugar prices through satta in the month of Ramazan.

https://www.geo.tv/latest/344171-fia-issues-notice-to-sugar-mill-of-federal-minister-khusro-bakhtiars-brother

Great job Wajid Zia, FIA and IK. There should be no sacred cows and all the profiteers should be fined heavily and jailed. This is the seminal battle with the mafia after the losers of the PDM tried to save their loot. This has the potential to bring his govt down, but its a battle that has to be fought against the mafia. Even IK doesnt win, someone will hopefully deal with these thugs Fr revolution style.

 

[MenInG]

Prime Minister Imran Khan on Monday did not approve the plan to immediately withdraw subsidies but directed to take a gradual approach aimed at protecting the people, particularly the middle-income group, who are now more exposed to spike in food and energy prices.

The premier chaired a meeting to review the status of the government subsidies on wheat, sugar, electricity and gas and the focus largely remained on whether or not to continue Rs100 billion annual subsidies on wheat flour, at least three participants of the meeting told The Express Tribune.

There was a proposal to reduce the wheat-related subsidies to Rs66 billion in the next fiscal year, which did not get endorsement during the meeting, the sources said.

Planning Minister Asad Umar and Special Assistant to PM on Power Tabish Gohar opposed the move to immediately withdraw the subsidies due to their adverse impact on the middle- and upper-income groups, along with those who are already cross-subsidising.

Former finance minister Shaukat Tareen, who is now tipped to replace Hammad Azhar, also attended the subsidies’ meeting, which was chaired by the prime minister, the sources said. Tareen was not available for comments. Tareen also separately met with Imran Khan on Monday.

As part of the International Monetary Fund (IMF) conditions, the government was working whether to give only targeted subsidies on various commodities and utilities and increase the electricity prices to reduce the circular debt. There are at least three new conditions in the IMF programme that seek to end the subsidies, particularly on electricity, the IMF documents showed.

The government’s reluctance to immediately take tough measures was also apparent in a video conference between the teams of Pakistan and the IMF, according to the sources privy to these discussions.

The Pakistani side was led by Hammad Azhar, who is holding the additional portfolio of finance minister, and the IMF was represented by its Managing Director Kristalina Georgieva.

The sources said that the Pakistani authorities showed their resolve to the reforms agreed with the IMF. But they indicated that these steps may not be taken as per the earlier commitments given in the Memorandum of Economic and Financial Policies (MEFP), submitted by former finance minister Hafeez Shaikh and SBP Governor Reza Baqir.

Last week, Premier Imran, Finance Minister Azhar and Tareen have all indicated renegotiating the IMF deal, which seeks to put around Rs1.5 trillion additional burden on the people in the next six months.

“ had a productive virtual meeting with the IMF MD on state of Pakistan’s economy and implementation of reforms. [I am] grateful that she acknowledged the positive economic indicators and the need to keep the welfare of people of Pakistan as the focus of all our policy endeavours,” Azhar tweeted after the meeting.

The sources said Pakistani authorities showed their resolve to continue with the reforms but they informed the IMF head that the unfolding situation due to the third wave of the deadly pandemic may delay some of these measures.

“I commended Pakistan’s response to the health and economic crisis, and we discussed the way forward for vital economic reforms and external financing needed to build a better future for Pakistan’s people,” Georgieva said.

The key issue was whether to increase electricity prices by further 36%, as committed by Pakistan with the IMF just last month.

The Power Division will take the targeted electricity subsidies plan with a new roadmap for the approval of the prime minister next week, said Gauhar.

He said it was discussed during Monday’s meeting that any reduction in the power subsidies should be gradual to avoid any collateral adverse impact on electricity demand and affordability for the “unprotected” categories of consumers to be defined.

Last week, a report by the IMF stated that Pakistan’s cabinet approved a timetable for the outstanding power price adjustments, which include the fiscal year 2020-21 annual rebasing equal to Rs3.34 per unit hike in the base tariff and quarterly tariff adjustments of Rs1.63 per unit to catch up with past deferrals.

In the next step, the government has committed to further increase annual base tariffs by June 1, 2021 and fourth quarterly increase of last fiscal year by end-September 2021, according to the IMF documents.

But the Power Division officials said that these plans were subject to review in light of new ground realities. The government was now considering various options like a reduction in sales tax on electricity and shutting down the expensive furnace oil-based power plants to reduce the required increase in tariffs to end the circular debt.

There was also an issue of further imposition of taxes to reduce the budget deficit in the next fiscal year. The MEFP has underlined that in the next step, the government would change both general sales tax (GST) and personal income tax rates with the fiscal year 2021-22 budget, yielding an estimated 1.1% of GDP or Rs570 billion.

The tax measures on account of federal excise duty and customs duties are expected to be over and above these measures, which will bring the total burden of additional taxes to around Rs700 billion, according to the FBR sources.

 

[MenInG]

The government on Thursday approved the import of over half a million tons of wheat at $377 per metric ton or Rs65 per kg price and permitted continuing subsidies at Utility Stores for one more month, turning down a request to extend the current rates for three months.

The Economic Coordination Committee (ECC) of the cabinet gave the nod to a summary on the award of the fifth international wheat tender to import 550,000 metric tons -- after matching process -- of wheat for the FY 2021-22, read a statement issued by the finance ministry.

A senior government official told The Express Tribune that the lowest bid was $377 per metric ton or Rs64.4 per kg at the current exchange rate.

The last tender had been signed at $383.5 per ton or Rs65 per kg but the $6 per ton benefit had been lost due to a fall in the value of the rupee that closed at Rs170.7 against a dollar on Thursday.

The 40kg import price will be roughly Rs2,576 at the Karachi port, excluding the impact of the inland freight.

The federal government has decided to import four million metric tons of wheat to meet domestic shortfall and build some strategic reserves.

The industries and production ministry tabled a summary before the ECC on the continuation of the prime minister’s relief package-2020 for the provision of five essential items at Utility Stores on subsidised rates till December 2021.

“The ECC granted an extension for a month with directions to present a detailed summary before the committee, keeping in view the international price hike in essential food commodities,” according to the finance ministry.

The statement suggests that the government might again have to increase prices of these five items to cut subsidies.

“The government will give Rs2 billion to Rs3 billion subsidy for the month of October.” The industries ministry, however, had sought permission for up to Rs8 billion subsidies for three months,” a senior government official said.

A few months ago, the ECC had increased the prices of wheat flour, sugar and cooking oil in the range of 19% to 53% at Utility Stores by reducing subsidies for the poor.

The wheat flour price had been increased by 19% or Rs150 per 20 kg to Rs950.

The ECC decided to increase the price of ghee by 53% or Rs90 per kg to Rs260.

The market price has increased to Rs340 per kg due to flawed taxation policies and a surge in prices in the international market.

The sugar prices were increased to Rs85 per kg -- an increase of 25%.

On another summary moved by the industries and production ministry, the ECC approved the import of 100,000 metric tons of urea for building strategic reserves during the Rabi season FY 2021-22.

The industries ministry had requested that the ECC should allow enhancing the provision of gas to Bin Qasim fertiliser plant from the existing 53 MMCFD per day to 63 MMCFD to manufacture an additional 100,000 metric tons of urea.

However, instead of increasing the gas supply due to its shortage, the ECC decided to import the commodity.

The price of fertiliser diammonium phosphate (DAP) has almost doubled in the past one year, increasing the cost of production coupled with higher prices of diesel being consumed in agriculture tube wells.

The ECC referred the matter of adjusting over Rs100 billion receivables from the K-Electric to the National Electric Power Regulatory Authority (Nepra). The decision was taken due to a disagreement between the Power Division and the Finance Division.

The committee decided that the Power Division might approach Nepra to review its earlier decision on the issue and present an updated summary before it for consideration, the finance ministry said.

The Power Division tabled another summary for the levy of sales tax on subsidy granted by Federal Government to electricity distribution companies (DISCOs). After seeking input from all the stakeholders concerned, the ECC decided that the matter might be referred to the Law Division for seeking its opinion and legal interpretation, which could be presented before the committee for further deliberations.

The ECC members were of the view that legal interpretation could not be done through the cabinet body’s decision.

They were of the view that the government might introduce legislation to address the issue. The FBR is claiming sales tax even on the amount that the government gives in subsidies to a class of consumers.

The ECC approved a summary by the Power Division on the payment mechanism for TNB Liberty Power Limited.

The committee gave the nod to the proposal as part of settlement with other independent power producers (IPPs) after the company agreed to give similar concessions.

https://tribune.com.pk/story/2322770/import-of-550000-tons-of-wheat-given-the-nod

 

[Last Monetarist]

https://tribune.com.pk/story/2327953/sugar-price-shoots-up-to-rs160-per-kilo

Sugar prices on Thursday spiked to a record high of up to Rs160 per kilo in retail markets in different parts of the country in the wake of an "artificial shortage" of the sweetener allegedly created by sugar mill owners and traders.

More importantly, the sugar mill owners are once again using delaying tactics in the production of new stocks of the sweetener from sugarcane, though they are bound by the sugar act to start cane crushing maximum by the first week of November every year, sources told The Express Tribune.

"This is the fourth day (Thursday) of November and currently, not a single sugar mill is in operation in the country," a source said.

Earlier, former Sindh chief minister Arbab Ghulam Rahim, who is now part of the ruling Pakistan Tehreek-e-Insaf (PTI), has written a letter to Sindh CM Murad Ali Shah to issue directives to the sugar mill owners to start crushing season in the province, it was learnt.

The sources speculated that the PTI offshoot group – under the leadership of Prime Minister Imran Khan's former close aide Jahangir Khan Tareen – was deliberately creating the situation to pressure the government to close graft cases against sugar mills, as Tareen remains the single largest producer of the commodity in the country.

The sugar was available at Rs100 per kilo in retail markets about a month ago, a retailer recalled.

"We have ended the day selling sugar at Rs140 per kilogramme in the wholesale market. We sold it yesterday at Rs130 per kg," a wholesaler at the country's largest wholesale market Jodia Bazaar, Karachi said.

The market remains the single largest source of the commodity being supplied to retailers across the country.

"The sugar mills are supplying the commodity in small quantities on a day to day basis to wholesalers at Jodia Bazaar these days. The short supplies are resulting in sky-high prices," he said.

Pakistan is facing an "artificial shortage" of sugar despite the fact that the mills have produced the commodity in surplus. Besides, the government imported sugar to maintain supplies and stabilise the price, the wholesaler recalled.

In the wholesale market of Lahore, the price of sugar has gone up to Rs135 per kg. In the retail shops, it has started selling at Rs140 per kg.

In Peshawar, a 50kg sack of sugar sold for Rs6,000 three days ago has reached Rs7,100. Thus, the wholesale price of sugar is Rs140 per kg, while the price of sugar in grocery stores has gone up from Rs145 to Rs150 per kg.

In Balochistan, the price of sugar has reached Rs150 per kg.

In April, the US Department of Agriculture (USDA) estimated Pakistan's sugar production at 6.8 million metric tons (MMT) during the current marketing year 2021-22, up 14% from the previous year’s revised estimate, due to significant increases in area and sugarcane yields. "Sugar consumption for the same (ongoing) year is forecast at 5.9 MMT, 3% higher than last year’s estimates," it said.

The Pakistan Sugar Mills Association (PSMA) had drawn Premier Imran’s attention, claiming that banks were not providing them the required loans to buy sugarcane from farmers.

Presently, the growers cultivated cane worth Rs500 billion. However, mill owners were facing liquidity crunch and banks were not providing the required credit to them. They borrow billions of rupees every year to pay growers and produce sugar, according to the PSMA.

There are unconfirmed reports in the market that a ship carrying sugar is on the way to Pakistan. It is expected to anchor at Port Qasim on Saturday. "We are selling sugar at Rs100 per kilo for December in the wholesale market," the wholesaler said.

The price is expected to go down in December as mills would throw the new stock of the commodity in huge quantities in the market by then, he said.

 

[transparent opacity]

ISLAMABAD:
Minister for Information and Broadcasting Fawad Chaudhry has said that the price of sugar has dropped by Rs43 per kilogramme while criticising the media for its alleged failure to air the news.

"The price of sugar has dropped by, not Rs5 or Rs10 per kilogramme, but by Rs43 per kilogramme," the minister claimed in a Twitter post on Sunday.

Criticising the media for 'refraining' from broadcasting the development, Fawad said: "The fact is our media runs on [airing] conspiracies and [instability] in the country."


The minister then went on to term "the link of the negative media with fake news" extremely detrimental, saying, "This is why new [media] laws are necessary."

Moreover, while responding to a query of a citizen regarding sugar hoarders, Fawad replied, "Sugar mill owners have acquired a stay on their cases, and urged the courts to expedite the proceedings."
A week ago, the minister had lambasted mill owners for creating the artificial sugar crisis to exploit the common man and assured that the stock of sugar in the country was adequate for at least three weeks.

He had also accused Pakistan Peoples Party (PPP) Co-chairman Asif Ali Zardari and the Sharif family of increasing sugar prices as most of the sugar mills in Sindh and Punjab belonged to them.

The information minister had highlighted how 90,000 tonnes of sugar was currently with the private sector.

https://tribune.com.pk/story/2329436/sugar-price-has-dropped-by-rs43-per-kilo-claims-fawad

 

[Bewal Express]

ISLAMABAD:
Minister for Information and Broadcasting Fawad Chaudhry has said that the price of sugar has dropped by Rs43 per kilogramme while criticising the media for its alleged failure to air the news.

"The price of sugar has dropped by, not Rs5 or Rs10 per kilogramme, but by Rs43 per kilogramme," the minister claimed in a Twitter post on Sunday.

Criticising the media for 'refraining' from broadcasting the development, Fawad said: "The fact is our media runs on [airing] conspiracies and [instability] in the country."


The minister then went on to term "the link of the negative media with fake news" extremely detrimental, saying, "This is why new [media] laws are necessary."

Moreover, while responding to a query of a citizen regarding sugar hoarders, Fawad replied, "Sugar mill owners have acquired a stay on their cases, and urged the courts to expedite the proceedings."
A week ago, the minister had lambasted mill owners for creating the artificial sugar crisis to exploit the common man and assured that the stock of sugar in the country was adequate for at least three weeks.

He had also accused Pakistan Peoples Party (PPP) Co-chairman Asif Ali Zardari and the Sharif family of increasing sugar prices as most of the sugar mills in Sindh and Punjab belonged to them.

The information minister had highlighted how 90,000 tonnes of sugar was currently with the private sector.

https://tribune.com.pk/story/2329436/sugar-price-has-dropped-by-rs43-per-kilo-claims-fawad

By most estimates the opposition parties own 80% of the Sugar Mills and its one of the failures of IK that hasnt dealt with these crooks with an iron hand. The courts give them protection and the govt does nothing. If a Sugar Mill hoards sugar, then the Sugar Mill should be taken over by the govt. Its not hard to do.

 

[Bewal Express]

Track and Trace-Historic Move by IK on the Mafia

It's been years in the offing and nothing could be done but finally IK has managed to Digitise the Sugar Industry and he is about to do the same with others. Well Done IK, this is the reason we elected you.
[MENTION=135038]Major[/MENTION] [MENTION=131701]Mamoon[/MENTION] why is the Sindh still opposed to this? Don't they want the tax collection to improve for PK and the black market to be destroyed?

Watch from 3.50

 

[Major]

Federal government bans sugar export

Islamabad: The federal government has announced to ban the export of sugar, saying the ban would drop sugar prices and provide relief to the people, ARY News reported.

According to details, the decision was made in the session chaired by Prime Minister Shahbaz Shareef. The government claims that the export ban would lessen the prices and provide relief to the people.

Sources say that the ban would be in place for the rest of the year, the country has enough reserves to fulfil its needs for the rest of the year.

The Prime Minister has decided to ban sugar exports despite having excess reserves.
In a statement issued by the Ministry of Industry and production, the govt had clarified that the price of sugar has not been increased. The news reports about the increase are false, there has not been such a change in prices as mentioned in the reports.


They added that government teams surveyed markets in Lahore, Karachi and Islamabad and made sure that the retail price for sugar is Rs85 per kg and the wholesale price is Rs82 per kg.

The government has taken notice of stores that were reported to be selling sugar at Rs94 per kg, and adequate action will be taken against those involved.

The government had also made carrying CNIC compulsory to shop at any utility store, the step had been taken to avoid bulk buying by a few people and to provide all people with the opportunity to buy at the utility stores.
https://arynews.tv/federal-government-bans-sugar-export/

 

[wasim-fan]

Tough call. At the moment the country has $13 bn of reserves to meet roughly 3 months of payment. Another teacher of loan or credit line seems like only way out.

 

[MenInG]

<blockquote class="twitter-tweet" data-partner="tweetdeck"><p lang="en" dir="ltr">Given the domestic demand, I have ordered a complete ban on the export of sugar. There will be a strict action against smuggling & hoarding. Absolutely zero tolerance for those found negligent in their duties.</p>— Shehbaz Sharif (@CMShehbaz) <a href="https://twitter.com/CMShehbaz/status/1523557550892851200?ref_src=twsrc%5Etfw">May 9, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[daytrader]

Govt rejects sugar export demand
Will not give nod until surplus stocks of sweetener are verified

ISLAMABAD:
The government on Monday turned down the demand of sugar millers for export of 1 million tons of sugar and said that surplus stocks were not independently “verifiable”, staving off the pressure for now.

A meeting between Finance Minister Ishaq Dar and the representatives of Pakistan Sugar Mills Association (PSMA) remained inconclusive. In the huddle, Minister for National Food Security and Research Tariq Bashir Cheema contested the claim that about 1.065 million tons of sugar was available in the country.

“Export permission has not been given and we will meet again on Thursday,” Cheema told The Express Tribune after the meeting. He added that until the sugar stocks were verified independently, the government would not grant permission for export.

“Floods have washed away 40% of sugarcane crop in Sindh and we also have to consider the sugar requirement of next year before giving the go-ahead for export,” he emphasised.

PSMA has threatened that they will not start the new sugarcane crushing season until the export of 1 million tons is allowed. Its chairman also contested Cheema’s viewpoint during the meeting.

Sources said that the government’s concern was that if sugar export was allowed, then prices in the domestic market would rise, which it could not afford at this time.

Dar emphasised the need for maintaining the strategic reserves of sugar and keeping prices at current levels for providing maximum relief to the people, according to the Ministry of Finance. He assured the PSMA chairman that the government was well aware of the issues being faced by the industry as well as sugarcane growers.

Average sugar consumption in Pakistan is estimated at 596,000 tons per month and the current stocks are sufficient for only 54 days.

The government’s assessment is that due to the widespread damage to the sugarcane crop, the sugar production will be 260,000 tons less than the annual consumption requirement next year. However, the millers disagreed, arguing that they would still have surplus of 750,000 tons.

“The government of Punjab has verified that there will be 400,000 tons of surplus sugar this year but the federal government is not willing to accept this number,” said former PSMA chairman Zaka Ashraf.

He, however, was of the view that the finance minister was very positive and another
meeting would be held in the current week.

“I fail to understand whether the government is not giving permission for export due to political reasons or it is a matter of ego,” remarked PSMA Chairman Asim Ghani Usman in a post-meeting media talk.

He said that the Punjab government had increased sugarcane prices by 33% to Rs300 per 40 kg and “with such an increase in input cost, how can the prices remain unchanged”.

At Rs300 per 40 kg, the cost of sugar production will come to Rs105 per kg for the efficient mills and Rs115 per kg for the less efficient mills in the northern region, according to a sugar mill owner.

He said that sugar prices were bound to increase after the Punjab government’s decision to increase the sugarcane rate.

Dar assured the PSMA delegation that the government would address and resolve their issues at the earliest and extended full support and cooperation to them, according to the finance ministry.

The PSMA chairman said that the Punjab government had instructed them to start the crushing season from November 25 and the association would soon review the order.

Due to the delay in starting the crushing season, the farmers have not been able to plant wheat that may create food security issues next year.

But Usman reiterated that the sugar mills had already surplus stocks from the last season, which were enough to meet the national requirement till January 15.

Express Tribune

 

[daytrader]

GOVT OKAYS ADDITIONAL EXPORT OF SUGAR

The Economic Coordination Committee (ECC) of the Cabinet has approved the export of 250,000 tonnes of sugar with the condition that the PSMA would not exceed prices in the domestic market.

Federal Minister for Finance and Revenue, Senator Ishaq Dar presided over the ECC meeting on Tuesday.

The Ministry of National Food Security and Research submitted a summary on the export of sugar during the year 2022-23 and presented the recommendations of the 4th meeting of the Sugar Advisory Board (SAB).

The export would be allowed to sugar mills on a first-come-first-served basis. The ECC further decided that the total quantity of export may be distributed among provinces based on their installed crushing capacity, to be determined by PSMA.

The committee also approved a Rs60bn financial arrangement for PSO to ensure the national fuel supplier can meet its international payment obligations to Qatar and maintain the LNG supply chain.

...
https://arynews.tv/govt-okays-additional-export-of-sugar/

 

[FearlessRoar]

Rawalpindi's sugar crisis deepens as merchants announce shutdown​

The city is grappling with an intensifying sugar crisis, as the Karyana Merchants Association has declared that it will cease sugar sales starting Friday as the association stated that it could no longer sell sugar at a price that leaves them with no profit margin.

“We cannot buy sugar at Rs163 per kilogram and sell it at Rs164 per kilogram,” said the association. “In addition to the cost of sugar, we incur another 10 rupees per kilogram in transportation, shopping bags, and loading expenses.”

Salim Parvez Butt, President of the Karyana Merchants Association, emphasized that they reject the government-set price of Rs164 per kilogram and are calling for wholesalers to provide retailers with a 10-rupee profit per kilogram.

In response to the situation, the Deputy Commissioner of Rawalpindi issued a warning, stating that any shop found selling sugar above the official price of Rs164 per kilogram would face legal action, including store closures and criminal charges against the shopkeepers.

Earlier, it was reported that sugar prices in Pakistan are expected to rise sharply in the coming weeks, potentially reaching Rs200 per kilogram, as the country faces a shortage of nearly 1 million tonnes. Currently, sugar is selling at Rs165-170 per kg in retail markets, up from Rs159 per kg in wholesale.

As of this week, wholesale sugar prices in Lahore stand at Rs159 per kg, while retail prices are between Rs165 and Rs170 per kg, a significant increase from Rs140-150 per kg just a month ago.

Hafiz Arif, President of the Kiryana Merchants Association, attributed the shortage to excessive exports of 700,000 tonnes of sugar over the past year. "Our current stocks are barely 5.8 million tonnes, but domestic consumption is rising. Exporting such large quantities has left us vulnerable," he said.

Arif also noted that sugarcane recovery has dropped to nearly 12%, and the area of cultivation has decreased by 20% this season. "This means estimates of total sugar production have been compromised, and market forces are predicting the price could hit Rs200 per kilogram soon. Currently, open-market or wholesale dealers do not have stocks, but sugar mills do," he added.

Official data suggests that Pakistan’s sugar production for the 2024-25 season will reach 6.8 million tonnes, a 3% increase from the previous year.

However, with annual consumption estimated at 6.6 million tonnes, the surplus is minimal. Industry experts warn that even minor disruptions, such as hoarding or supply chain delays, could trigger panic buying.

Rawalpindi's sugar crisis deepens as merchants announce shutdown | The Express Tribune

Karyana Merchants Association to halt sugar sales, citing inability to sell at the government-set price of Rs164/kg.

tribune.com.pk

 

[BouncerGuy]

Sugar prices should not exceed Rs164 per kg, says Deputy PM Dar

Deputy Prime Minister Ishaq Dar on Wednesday said that retail sugar prices should not exceed Rs164 after the Competition Commission of Pakistan (CCP) warned sugar mills against price manipulation.

Contrary to the rates announced by the prime minister as well as several attempts by the government to maintain retail sales at Rs130 per kg, sugar prices in the markets continue to soar above Rs180 per kg in various markets across the country.

Sugar consumption is forecast to increase slightly to 6.7 million tonnes as it has continuously grown due to the population growth and demand from the food processing sector.

During the last season, Pakistan produced more than 6.84m tonnes of sugar, which is expected to rise in 2024-25.

Speaking to journalists, the deputy prime minister said that according to news reports, there was a spike in sugar prices to Rs178 -179, “which is obviously not tolerable” to the prime minister.

“So yesterday we had a late night meeting so we could bring this conclude this matter — so we can together find a viable way in which a common citizen can find relief and he doesn’t have to hear talks of [sugar prices] reaching Rs180 to Rs200,” he said.

“And we reach a reasonable price where you don’t suffer losses either — [so] subcommittee is being made for the numbers which Rana Tanveer sahab [minister for national food security and research] will head.”

Dar said the committee will work until April 19 to determine costs and provide feedback on the sugar mills claims — that they were not responsible for the price hike of the commodity.

He also added that they needed to work on a system so that the “common man can have cheaper sugar … but for that we would need a distribution channel and an implementation mechanism is necessary”.

On Federal Board of Revenue (FBR)’s sales tax on sugar, he said that it would be charged at Rs154 to 155 — with the price cap at Rs159.

He said that the government will work to gather intelligence reports, along with the CCP, which will also collect data.

Given this alleged massive siphoning from the consumers, the CCP had stated that it was closely monitoring the ongoing sugar crisis and warned that strict enforcement and policy actions will be taken if any anti-competitive activities are found.

The CCP has been working to curb cartelisation in the sugar industry, promoting fair competition and protecting consumers.

“We need to ensure a two tier system and if the government is satisfied that we can implement the two tier system, the advantage will be that the common man can get sugar at a cheaper price,” Dar said.

The CCP inquiry launched in 2020 revealed that sugar mills were prima facie engaged in price-fixing and controlling supply through coordinated actions facilitated by the Pakistan Sugar Mills Association (PSMA).

As part of the investigation, the CCP also conducted raids and imposed Rs44 billion in penalties on sugar mills and the PSMA in August 2021, one of the highest fines in its history.

DAWN NEWS

 

[BouncerGuy]

https://twitter.com/x/status/1944266030429200673

 

[BouncerGuy]

NA committee grills govt on sugar policy

A parliamentary committee on Wednesday questioned why the government was focusing on sugar prices despite having deregulated wheat prices, as the finance ministry confirmed ongoing discussions with the International Monetary Fund for an import rebate.

A meeting of the National Assembly’s Standing Committee on Finance and Revenue, presided over by Syed Naveed Qamar, expressed concern over tax exemptions on the import of sugar.

Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial informed the committee that sugar imports were subject to a total of 54 per cent tax, resulting in higher retail prices of the commodity. He said the FBR had granted tax exemptions on sugar imports after receiving the federal cabinet’s decision in this regard.

Mr Qamar observed that the government should disengage from sugar-related matters and allow the private sector to handle its import and export. He said that while the prices of other commodities fluctuate based on supply and demand, increases in sugar prices consistently trigger public outcry. He added that it was surprising the government had deregulated wheat operations yet continued to focus on sugar prices, despite sufficient sugar stocks being available in the country.

Committee member Javed Hanif inquired about the IMF’s stance on the tax exemption for sugar imports. He criticised the government for attributing every budgetary measure to IMF requirements, noting that taxes had been imposed even on poultry chicks and mutual funds, while sugar had been granted an exemption.

The finance secretary told the committee that discussions with the IMF were still ongoing on the issue.

The committee also considered “The Parliamentary Budget Office Bill, 2025”, moved by MNA Rana Iradat Sharif Khan, and constituted a subcommittee under the convenorship of MNA Nafisa Shah for detailed deliberation and submission of a report within 30 days. MNAs Ali Zahid, Arshad Abdullah Vohra and Muhammad Mobeen Arif will serve as members of the subcommittee.

The standing committee expressed serious concern over the absence of the industries and production secretary, who was scheduled to give a detailed briefing on the new electric vehicle (EV) policy.

Minister of State for Finance Bilal Azhar Kayani regretted the absence and agreed with the committee’s decision to defer the agenda item related to the EV policy.

MNA Mirza Ikhtiar Baig presented the report of the subcommittee on “The Corporate Social Responsibility Bill, 2025”, moved by Nafisa Shah. The committee adopted the report but deferred discussion on it to the next meeting.

The Ministry of Finance and the Securities and Exchange Commission of Pakistan (SECP) opposed the bill and requested additional time to consult all stakeholders. However, Nafisa Shah, Ikhtiar Baig and Javed Hanif opposed granting further time to the government on the matter.

Mr Kayani said it would be premature for him to state whether the draft bill would be supported or opposed, but emphasised that broader consultation with stakeholders was necessary before any informed discussion could take place in the committee.

The committee chairman allowed the government one month to complete its consultations.

Sugar price at Rs175 a kg

Meanwhile, the Ministry of National Food Security and Research on Wednesday said that the retail price of sugar in the market will not exceed Rs173 to Rs175 in the wake of the ex-mill price of sugar fixed at Rs165 per kg.

A formal notification, fixing the retail price, is being finalised and will be issued after approval from the federal cabinet, the ministry says. Minister for National Food Security and Research Rana Tanveer Hussain emphasised that all provincial governments will be responsible for ensuring the implementation of the approved retail price of sugar, providing relief to consumers and maintaining price stability across the country.

DAWN NEWS