Pakistan Cancels Sugar Import Tender Over High Prices

The Pakistan government has cancelled the tender for importing 100,000 tonnes of sugar due to unsatisfactory bids. On August 3, the Trading Corporation of Pakistan (TCP) had issued a fresh tender. However, deals with all three bidding companies could not be finalised. Officials said no compromise will be made on price, quality, or procurement rules.

Sources confirmed that none of the bids met the government’s required specifications. The offered prices were considered too high and economically unviable. Fine granulated sugar was quoted between $539 and $567 per tonne, while medium-sized sugar reached $599 per tonne. These rates were deemed unacceptable by authorities.

Additionally, the government would have had to pay extra charges. These include cargo handling at Karachi Port, unloading, truck loading, and inland transportation costs. Such expenses would further raise the price of imported sugar in local markets. Officials believed the overall cost was too high to proceed.

Meanwhile, the International Monetary Fund (IMF) raised objections to Pakistan’s sugar import plans. The IMF warned that offering tax exemptions and subsidies on sugar could risk the $7 billion loan programme. The government’s proposed Rs55 per kg subsidy on imported sugar also drew concern from the IMF.

Imported sugar is expected to cost Rs249 per kilogram upon arrival. With the subsidy, the financial burden would significantly increase. Given these risks and rising import costs, the government decided to cancel the tender. A new strategy is expected to be discussed in future economic planning sessions.