Government’s Permission for Sugar Export Based on Incorrect Estimates Led to Crisis: Competition Commission

Islamabad: The Competition Commission of Pakistan has stated that the sugar sector provided the government with incorrect data regarding sugar production, which led to the approval of exports and subsequently triggered a national crisis.
According to Express News, Finance Minister Mohammad Aurangzeb received a briefing from the Competition Commission on the issues facing the sugar sector. Chairman of the Commission, Dr. Kabir Sidhu, informed the minister about the measures taken against the sugar cartel.
Dr. Sidhu explained the reasons behind the recent sugar crisis and highlighted that the country’s sugar stock was reduced following the approval of exports. The Sugar Advisory Board had provided incorrect estimates regarding sugarcane production, available stocks, and sugar production between June and October of the previous year.
The Competition Commission emphasized that decisions should not be based on data provided by the Sugar Mills Association. For effective decision-making, independent and transparent data must be used. The Commission is currently working on proposals to assist the Sugar Sector Reform Committee.
Additionally, the Commission briefed the Finance Minister about the causes of sugar crises in 2008-09, 2015-16, and 2019-20. It was revealed that in previous sugar crises, limited sugar supplies were created by exporting sugar. Orders were passed against the sugar cartel in 2010 and 2021, and clear evidence of cartelization was found in the 2009-10 sugar inquiry. However, the decision against the sugar cartel from 2010 has not yet been made public.
The Competition Commission also shared that the Sindh High Court had placed a stay on the matter until 2021, and the case is now pending before the Supreme Court. The Competition Tribunal has sent the 2021 decision back to the Commission for re-hearing. The case hearing was scheduled, but all mills filed requests for adjournments.
The Finance Minister assured that the government would assist the Competition Commission for the swift resolution of pending cases in courts. He also announced that the sugar sector would be fully deregulated, and following this, the role of the Commission would be expanded. Furthermore, data sharing from other institutions will be ensured for effective investigations.
The meeting was attended by the Commission’s Registrar Shehzad Hussain, Legal Advisor Hafiz Naeem, Cartel Director Salman Zafar, Finance Minister’s advisor Khurram Shehzad, and others.