LAHORE: The sugar industry claims it can generate $5 billion annually from sugar and ethanol exports if the government removes what it describes as stifling regulations and reinstates bio-ethanol blending policies.

Speaking at a press conference on Monday, Pakistan Sugar Mills Association (PSMA) Chairman Chaudhry Zaka Ashraf and other representatives stated that Pakistan now has a substantial surplus of over one million tonnes of sweetener. They warned that delayed export permissions are causing serious financial losses and that the country is missing out on vital foreign exchange.

Industry leaders argued that without any additional investment, Pakistan has the capacity to produce 12m tonnes of sugar annually. By exporting 6m tonnes, the country could earn $4bn, with an additional $1bn coming from ethanol exports.

A key issue remains the abolished ethanol blending policy. The industry urges for an immediate 20 per cent bioethanol mix in petrol, a strategy already proven successful in neighbouring countries, which would offer direct relief to consumers and save billions on costly petroleum imports.

Published in Dawn, March 31st, 2026