ISLAMABAD: A parliamentary committee on Wednesday questioned why the government was focusing on sugar prices despite having deregulated wheat prices, as the finance ministry confirmed ongoing discussions with the International Monetary Fund for an import rebate.

A meeting of the National Assembly’s Standing Committee on Finance and Revenue, presided over by Syed Naveed Qamar, expressed concern over tax exemptions on the import of sugar.

Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial informed the committee that sugar imports were subject to a total of 54 per cent tax, resulting in higher retail prices of the commodity. He said the FBR had granted tax exemptions on sugar imports after receiving the federal cabinet’s decision in this regard.

Mr Qamar observed that the government should disengage from sugar-related matters and allow the private sector to handle its import and export. He said that while the prices of other commodities fluctuate based on supply and demand, increases in sugar prices consistently trigger public outcry. He added that it was surprising the government had deregulated wheat operations yet continued to focus on sugar prices, despite sufficient sugar stocks being available in the country.

Food ministry says retail price to be capped at Rs175 per kilogram

Committee member Javed Hanif inquired about the IMF’s stance on the tax exemption for sugar imports. He criticised the government for attributing every budgetary measure to IMF requirements, noting that taxes had been imposed even on poultry chicks and mutual funds, while sugar had been granted an exemption.

The finance secretary told the committee that discussions with the IMF were still ongoing on the issue.

The committee also considered “The Parliamentary Budget Office Bill, 2025”, moved by MNA Rana Iradat Sharif Khan, and constituted a subcommittee under the convenorship of MNA Nafisa Shah for detailed deliberation and submission of a report within 30 days. MNAs Ali Zahid, Arshad Abdullah Vohra and Muhammad Mobeen Arif will serve as members of the subcommittee.

The standing committee expressed serious concern over the absence of the industries and production secretary, who was scheduled to give a detailed briefing on the new electric vehicle (EV) policy.

Minister of State for Finance Bilal Azhar Kayani regretted the absence and agreed with the committee’s decision to defer the agenda item related to the EV policy.

MNA Mirza Ikhtiar Baig presented the report of the subcommittee on “The Corporate Social Responsibility Bill, 2025”, moved by Nafisa Shah. The committee adopted the report but deferred discussion on it to the next meeting.

The Ministry of Finance and the Securities and Exchange Commission of Pakistan (SECP) opposed the bill and requested additional time to consult all stakeholders. However, Nafisa Shah, Ikhtiar Baig and Javed Hanif opposed granting further time to the government on the matter.

Mr Kayani said it would be premature for him to state whether the draft bill would be supported or opposed, but emphasised that broader consultation with stakeholders was necessary before any informed discussion could take place in the committee.

The committee chairman allowed the government one month to complete its consultations.

Sugar price at Rs175 a kg

Meanwhile, the Ministry of National Food Security and Research on Wednesday said that the retail price of sugar in the market will not exceed Rs173 to Rs175 in the wake of the ex-mill price of sugar fixed at Rs165 per kg.

A formal notification, fixing the retail price, is being finalised and will be issued after approval from the federal cabinet, the ministry says. Minister for National Food Security and Research Rana Tanveer Hussain emphasised that all provincial governments will be responsible for ensuring the implementation of the approved retail price of sugar, providing relief to consumers and maintaining price stability across the country.

Published in Dawn, July 17th, 2025