Pakistan is set to export 40,000 tons of refined sugar to Tajikistan at preferential prices under a government-to-government (G2G) agreement through the state-run Trading Corporation of Pakistan (TCP).
The export deal is expected to bolster Pakistan’s sugar industry, currently facing a surplus, while supporting bilateral trade with Tajikistan.
However, this agreement hinges on the approval of the Economic Coordination Committee (ECC) and the federal cabinet, both of which are expected to review the proposal soon.
The Ministry of Industries and Production has already sent a summary to the ECC, which is anticipated to discuss the matter in its upcoming session.
According to an official source, the request for sugar came directly from the Prime Minister of Tajikistan, who asked for 40,000 metric tons of sugar at a reduced price.
Additionally, Tajikistan is seeking financial assistance from Pakistan to cover operational fees at Karachi Port related to their imports.
The current ex-mill sugar price in Pakistan stands at approximately Rs140 per kilogram, but under this agreement, the government plans to supply sugar to Tajikistan at a slightly reduced rate, ranging between Rs133 and Rs136 per kilogram.
The deal aligns with Pakistan’s broader strategy to manage its surplus sugar stock.
The Sugar Advisory Board (SAB), led by Federal Minister for Industries and Production Rana Tanveer Hussain, has already given its nod to the export proposal.
The SAB’s decision followed the government’s earlier move in June 2024 to approve the export of 150,000 tons of sugar, ensuring that the domestic market remains stable and well-supplied.
As the ECC prepares to finalize the details, the federal government is keen on maintaining a balance between supporting the sugar industry through exports and safeguarding local consumers from price hikes.
