Pakistan Denies Sugar Shortage, Cites Sufficiency of Stock and Strategic Reserves

Federal Minister for National Food Security and Research, Rana Tanveer Hussain, has dismissed concerns about a sugar shortage in the country, stating that there is no issue of supply or shortage. Despite initial projections for sugar production of 7 million metric tons, the actual production reached 5.8 million metric tons by the end of April 2025. However, with a sufficient stock combined with a buffer reserve of 500,000 metric tons, Pakistan has enough sugar to meet its annual domestic consumption requirement of 6.3 million metric tons.

Key Takeaways:

• The Pakistani government has categorically rejected the narrative of a sugar shortage in the country, terming it a perception-driven panic.
• The government has sufficient stock to meet domestic needs, with a total availability of 6.3 million metric tons, including 5.8 million metric tons from this year's production and 500,000 metric tons as buffer stock.
• Pakistan exported 750,000 metric tons of surplus sugar, earning 402 million US dollars, which helped to stabilize the market and bring down the domestic sugar price from Rs. 138 to Rs. 119 per kg.
• The Minister clarified that the decision to export sugar was taken after thorough verification of data from the Federal Board of Revenue (FBR) and other relevant departments, and that sugar exports are a historical practice spanning decades.
• Recent reports about sugar imports have been clarified by the Minister, stating that permission has been granted for the import of 500,000 metric tons, but the government intends to import only up to 300,000 metric tons, at a maximum cost of 150 million US dollars.
• The Minister acknowledged that crop yields, including sugarcane and maize, declined this year due to severe heat waves and climate challenges.
• Rana Tanveer Hussain also spoke about the government's macroeconomic achievements, including an improvement in foreign exchange reserves from 2-3 billion dollars to nearly 20 billion dollars, a reduction in the policy rate from 22 percent to 11 percent, and a decline in inflation.

Statistics:

• Pakistan has a stock of 5.8 million metric tons of sugar from this year's production.
• The total availability of sugar in the country is 6.3 million metric tons, including 500,000 metric tons as buffer stock.
• The country's sugar import permission is for 500,000 metric tons, but the government intends to import only up to 300,000 metric tons, at a maximum cost of 150 million US dollars.
• Pakistan's foreign exchange reserves have improved significantly, rising from 2-3 billion dollars to nearly 20 billion dollars.
• The policy rate has been reduced from 22 percent to 11 percent.
• Inflation has come down.

Sources:

• Press Information Department (Pakistan)
• Ministry of Information and Broadcasting, Government of Pakistan
• Federal Board of Revenue (FBR)
• Ministry of National Food Security and Research, Government of Pakistan