ISLAMABAD: The government on Monday banned export of sugar but turned down a proposal to import the commodity that Prime Minister Imran Khan had approved 10 days ago as a measure to arrest the skyrocketing prices of the sweetener.
“In order to maintain prices in the domestic market, the Economic Coordination Committee (ECC) of the cabinet banned the export of sugar,” said a statement issued by the Ministry of Finance after the meeting. Adviser to the Prime Minister on Finance Abdul Hafeez Shaikh chaired the meeting.
In December 2018, the Pakistan Tehreek-e-Insaf (PTI) government had allowed the export of 1.1 million tonnes of sugar. The export of sugar often results in an increase in the price of the commodity in the local market.
The Ministry of Industries and Production had proposed that the ECC should ban the export of remaining 350,000 tonnes of sugar against the approved quota of 1.1 million tonnes and allow import of 300,000 tonnes of the commodity.
The Ministry of Industries informed the ECC that the current price of sugar was Rs79 per kg in the open market, which should have been at least Rs73. The meeting was informed that the ex-factory sugar price surged from Rs68 to Rs73 per kg without any justification.