ISLAMABAD: No progress has been made in the provinces over the federal government’s plan to completely deregulate the nation’s sugar industry. As part of the terms reached with the International Monetary Fund (IMF), the federal government chose to deregulate the sugar industry. The federal ministry of industry and production has recommended that the provinces pass legislation on the subject, but the IMF deadline for sector deregulation is approaching. According to sources, the International Monetary Fund set a deadline of March 2026 for deregulation. By June of this year, the federal government must completely withdraw from the sugar industry.
Following deregulation, the Pakistani government will not interfere with supply, pricing, or procurement processes, allowing the private sector to function independently. The private sector will oversee all sugar handling and commerce. Sugar will be exported in the event of excess production, a strategy meant to guarantee higher prices for sugarcane growers. Farmers won’t have to plant sugarcane after deregulation, and they can sell their produce to any sugar mill in the nation. The establishment of a sugar mill will not be prohibited by the government. Export limitations on sugar will be removed following industry deregulation.
