ISLAMABAD, Nov 19: The government is expected to allow the export of around 200,000 tons sugar in the next few weeks through a subsidy on self-export basis.

Commerce and industries minister Abdul Razak Dawood told reporters that it has been decided to present the demand of Pakistan Sugar Mills Association (PSMA) for sugar export before the Economic Coordination Committee (ECC) of the cabinet.

The minister said that he held a meeting with PSMA delegation to consider export of 200,000 tons of surplus sugar this season.

He said that his ministry had now proposed to allow PSMA to export this surplus commodity on self-help basis and the subsidy involved in the export would be recovered by the government through an extra tax in the coming season. “The final decision would be taken by the ECC,” said the minister.

Official sources said that the commerce minister had earlier promised to the PSMA that Trading Corporation of Pakistan (TCP) would purchase the surplus commodity, but the TCP expressed its inability to spare around Rs300 million to purchase surplus sugar.

These sources said that it has been proposed now to allow export of sugar by PSMA free of taxes and to levy central excise duty on sugar sale in the local market in the coming season to recover this subsidy.

These sources, however, said that government had now come under the PSMA pressure for sugar export and levy CED on sale in the local market. The CED, these sources said, would be recovered from the local consumers.

The minister said that suspension of all duties on Pakistani exports by Washington, increase in quota and greater market access to Pakistani products in the United States was a bit slow but moving on “steadily”.

He said that Pakistan’s ambassador to the United States Dr Maleeha Lodhi was currently following up the case with authorities in Washington.

The minister hoped that the outcome on that front would be positive. He said that a positive outcome was expected sometime around Christmas.

He said that he had a meeting with the US ambassador in Islamabad Wendy Chamberlin late last week to update discussions on duty suspension and access to Pakistani products to the US market.