ISLAMABAD, June 10: Pakistan is expected to export up to 150,000 tons of sugar to Afghanistan once loya jirga proceedings are over by end of this month, official sources told Dawn.

The Afghan trade delegation that visited Pakistan last month had expressed its desire to import around 100,000 tons of sugar from Pakistan. Islamabad had briefed the delegation that it had enough surplus sugar to meet Afghan requirements.

Sources in the commerce ministry said that Pakistan Sugar Mills Association (PSMA) and other exporters had told the government that given the existing duties and taxes, Pakistani sugar could not compete international market.

They had proposed to the government that it should provide duty draw back facility to the exporters as an incentive to clear surplus stock well in time to avoid glut in the local market later.

These sources said that Afghan delegation had promised to firm up its final estimates of sugar requirement and then dispatch a relevant delegation for quotations and negotiations on sugar contracts.

“We have since been waiting for the reply,” said a government official and has now been communicated through diplomatic channels that the delegation has been delayed due to loya jirga engagements.

Commerce minister Abdul Razak Dawood had told a news conference early this week that the government was looking into the proposal of PSMA regarding some incentives scheme to clear the sugar stocks.