Pakistan govt 'cancels' sugar import tender

The Pakistan government reportedly decided to cancel the tender for the import of 100,000 tonnes of sugar, ARY News reported, quoting well-placed sources.

On August 3, the Trading Corporation of Pakistan (TCP) issued a new tender for the import of 100,000 metric tons of sugar.

According to official sources, the deals with all three companies that submitted bids could not be finalized. Authorities urged that no procedural violations will be committed in acquiring imported sugar, and that neither the price nor the quality standards will be compromised.

Sources said the tender bids did not meet the government’s required specifications regarding price, size, and quality of sugar.

The offered rates for fine granulated sugar ranged between $539 and $567 per tonne, while the medium-sized sugar was quoted at $599 per tonne—both deemed unacceptable.

In addition to high prices, the government would have had to bear cargo handling charges at Karachi Port, along with unloading, truck loading, and transportation expenses to deliver the sugar from the port to various markets across the country.

Read more: Pakistan govt issues tender for 100,000 metric tons sugar import

Earlier, the International Monetary Fund (IMF) expressed reservations over Pakistan’s decision to offer tax exemptions and subsidies on imported sugar, warning that such measures could jeopardise the ongoing $7 billion loan program.

According to official sources, the IMF opposed the government’s plan to provide a subsidy of Rs55 per kilogram on imported sugar, which is expected to arrive in Pakistan at a cost of Rs249 per kg.