Pakistan sugar sector de-regulation faces delays amid IMF conditions
Provinces fail to legislate as federal government struggles to meet IMF conditions on sugar sector market reforms.
Islamabad: The federal government has planned to fully de-regulate Pakistan’s sugar sector, but there is still no real progress on this issue. The provinces have not taken proper steps yet.
The government decided to de-regulate the sugar sector because it is one of the conditions set by the International Monetary Fund (IMF). Pakistan agreed to this plan while talking to the IMF.
Sources say that the IMF has given a deadline of March 2026 for full de-regulation of the sugar sector. The federal government is required to leave the sugar sector completely by June this year. However, the provinces have not made any laws yet, even though the Ministry of Industries and Production asked them to do so.
“Delays in legislative action by provinces could make it difficult for Pakistan to meet IMF commitments on time.”
After de-regulation, the government will not control sugar prices anymore. It will also not control sugar buying, selling, or supply. All these matters will be handled by the private sector.
Sugar trade and business will be fully managed by private companies. If there is extra sugar produced, it will be exported to other countries. This step is meant to help sugarcane farmers get better prices.
After de-regulation, farmers will not be forced to grow sugarcane. They will be free to choose what crop they want to grow. They will also be allowed to sell their sugarcane to any sugar mill in Pakistan.
There will also be no government ban on setting up new sugar mills. After the sugar sector is de-regulated, restrictions on sugar exports will also be removed.
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