Pakistan’s Finance Minister Muhammad Aurangzeb announced that, for the first time, sugar exports to Afghanistan are being conducted exclusively through official channels, eliminating smuggling with the support of law enforcement agencies. Speaking at a press conference alongside Federal Information Minister Attaullah Tarar, Aurangzeb emphasized that ensuring regulated trade is a crucial step in stabilizing the country’s economic position.
The finance minister highlighted the significance of monitoring sugar exports, stating, “We need every single dollar coming in to balance our current account.” He further explained that this season, Pakistan is expected to have a total sugar supply of 5.7 million tonnes, in addition to existing reserves from the previous harvest. This surplus, coupled with enhanced regulatory oversight, is expected to maintain price stability and prevent artificial shortages.
To strengthen transparency in the sugar industry, the Federal Board of Revenue (FBR) has deployed personnel at sugar mills nationwide, ensuring accountability and minimizing illicit practices. The involvement of the Federal Investigation Agency (FIA), Intelligence Bureau (IB), and other law enforcement agencies has further reinforced the system’s enforcement, making sure sugar is sold to genuine distributors. According to Aurangzeb, these measures have significantly reduced profiteering and corruption within the supply chain.
Despite these efforts, sugar prices have surged in recent months, reaching an average of Rs150.43 per kilogram in February 2025, up from Rs144.47 per kg a year earlier. To counteract the rising prices, the federal government has announced the import of raw sugar (shakkar), which can be refined locally to enhance supply and stabilize the market. The decision to regulate sugar trade follows the government’s approval of large-scale sugar exports between June and October 2024, during which authorities permitted the export of 750,000 metric tonnes, including a final batch of 500,000 metric tonnes in October.
The finance minister also pointed out the positive impact of these reforms on government revenue, noting that sales tax collection from sugar has increased substantially. In the first two months of 2025 alone, revenue from sugar sales tax surged to Rs24 billion, a 54% rise compared to Rs15 billion collected in the same period last year. This increase underscores the effectiveness of the government’s enhanced monitoring systems.
Apart from discussing sugar exports, Aurangzeb highlighted promising economic trends, particularly in remittances, stock market performance, and business confidence. He revealed that remittance inflows for February 2025 had reached an impressive $3.1 billion, with total inflows projected to hit an all-time high of $36 billion by the end of the fiscal year.
Independent surveys conducted by institutions such as Gallup, ICC, Ipsos, and the State Bank of Pakistan have shown a noticeable improvement in business and consumer confidence. This positive sentiment is reflected in increased business activity and a growing interest in the stock market. Aurangzeb noted that 52,000 new investors have entered Pakistan’s capital markets in recent months, contributing to the seven initial public offerings (IPOs) on the stock exchange over the past year—significantly higher than the annual average of four IPOs over the last decade.
Despite market fluctuations, Aurangzeb remains optimistic about Pakistan’s economic trajectory. He emphasized that the government’s regulatory initiatives, including stricter oversight of sugar exports and broader financial sector reforms, will contribute to long-term economic stability and resilience.
By addressing risk factors such as smuggling, price instability, and regulatory inefficiencies, Pakistan’s latest measures signal a more controlled and structured approach to trade and economic management. The finance minister’s outlook suggests that ongoing improvements in governance and transparency will play a vital role in strengthening the country’s financial resilience in the years ahead.
