Parliament’s Public Accounts Committee (PAC) session held in Islamabad wherein lawmakers grilled the Federal Board of Revenue (FBR) over the controversial sugar import policy, calling it a major scandal and accusing authorities of favoring investors while ignoring public concerns.
PAC Chairman Junaid Akbar and several committee members questioned why sugar was exported when there was no crisis and why it is now being imported with heavy tax relaxations. “When it’s about public relief, the IMF is used as an excuse. But when it comes to rewarding investors, the IMF is ignored,” said Akbar, lashing out at the FBR chief.
Committee member Riaz Fatyana called the sugar import decision the government's third major scandal after wheat and electricity, stating, “This is a case of clear collusion. When there was no shortage, who allowed the export of 750,000 tons of sugar? And now, who approved the import of 500,000 tons?”
The FBR, under a cabinet directive, reduced the sales tax on imported sugar from 18 percent to just 0.25 percent, which PAC members say benefited powerful sugar cartels. “You make the wrong decisions, and we get blamed,” Akbar told FBR Chairman Rashid Langrial.
In response, Langrial clarified that the cabinet had ordered the removal of import duties, and the FBR was bound to follow government instructions. He added that the IMF would likely raise objections over the decision.
Further tensions rose when Naveed Qamar questioned who allowed sugar cartels to dominate the market. Moin Amir remarked that the chief ministers of Punjab and Sindh lack the authority to act against the sugar mafia.
PAC demanded a detailed briefing on sugar import policy in the next session and ordered an audit of loan defaults.
During the session, it was also revealed that 25 sugar mills collectively owe Rs 23.3 billion to the National Bank of Pakistan. Despite a court ruling in favor of the bank in 2015, the decision remains unenforced. Senator Mohsin Aziz said, “These sugar mills are earning windfall profits but still default on loans. Their people are sitting among us.” Naveed Qamar commented, “The sugar mill owners are our own friends.”
PAC Chairman Junaid Akbar concluded that mill owners are profiting both from sugar exports and imports, and called for confirmation of loan recoveries from defaulters through a formal audit.
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