Govt to Deregulate Sugar, Wheat Sectors for Market Efficiency

KARACHI: Finance Minister Senator Muhammad Aurangzeb announced the government’s plan to deregulate the sugar and wheat sectors. Speaking at a Karachi Chamber of Commerce and Industry (KCCI) event, he stressed the need for the government to withdraw from the entire value chain. This move is aimed at promoting market efficiency and allowing the private sector to drive growth.

Aurangzeb emphasized that the deregulation would cover the entire supply chain, not just one element. He said it was essential for the government to get out of the entire value chain for it to be effective. The finance minister assured that structural reforms, fiscal discipline, and strategic partnerships would guide Pakistan’s economic transformation.

The finance minister called the current geopolitical situation a “golden opportunity” for Pakistan’s stability. He pointed to strong support from international partners such as China, the United States, and Saudi Arabia. Aurangzeb noted that discussions with these countries are now focused on boosting trade and investment through the private sector.

He highlighted that Pakistan’s economic future depends on a private-sector-led growth model, with the government facilitating the right environment. Aurangzeb also responded to a question about tomato price hikes, attributing them to disruptions in the Pakistan-Afghanistan border supply chain.

The finance minister reassured that Pakistan had achieved macroeconomic stability, with improvements recognized by major rating agencies. He also mentioned ongoing reforms, including the closure of loss-making entities and the transition to a new pension scheme for government employees.

Read More : Sugar Mills Association warns govt about rising prices

The Sugar Mills Association (SMA) warned the government on Tuesday about the rising sugar prices across Pakistan. The SMA urged the government to avoid unnecessary sugar imports and keep the Federal Board of Revenue (FBR) portals open.

The FBR had closed the portals to prevent the import of substandard sugar, which caused a shortage in the market. This disruption in the supply chain has led to higher sugar prices, according to the SMA. The association emphasized that the sugar industry is not responsible for the price hike.

The SMA also criticized the government’s decision to compel mills to sell sugar to government-approved dealers. These measures are only worsening the sugar supply crisis, the association claimed. The SMA warned that the situation could become more severe if no action is taken.