Sugar Sector de-regulation on IMF demand sees lack of progress

ISLAMABAD: The federal government’s plan with regard to full deregulation of the country’s sugar sector has been in quandary with no progress made in provinces over the matter.

The federal government decided to deregulate the sugar sector as part of the conditions agreed upon with the International Monetary Fund (IMF).

The IMF deadline for deregulation of the sector looming but the provinces have yet to legislate over the matter requested by the federal ministry of industries and production.

Sources said that the International Monetary Fund had fixed March 2026 deadline for the deregulation. The federal government required to fully exit from sugar sector by June this year.

The government of Pakistan after deregulation, will not intervene in pricing, procurement, or supply mechanisms, allowing the private sector to operate freely.

All sugar handling and trade will be managed by the private sector.

In the case of surplus production, sugar will be exported, an approach aimed at ensuring better prices for sugarcane farmers.

After deregulation the farmers will not be bound to sow sugarcane crop, moreover, they could sell their crops to any sugar mill in the country.

There will be no government ban over establishing a sugar mill. After deregulation of the sector restrictions over sugar exports will be lifted.