Lahore, July 17, 2025 . The signing of an agreement by Zaka Ashraf and his team with Rana Tanvir Hussain, Minister for Industries and Production , has irked the elected body of Pakistan Sugar Mills Association (PSMA) .
Rizwan Allah Khan , an elected chairman of PSMA (KPk zone) has informed to the government top functionaries through a letter, a copy available with NEWSMAN, that Zaka Ashraf and his team has nothing to do with PSMA affairs and they are not authorised to have meetings or sign agreements with the government authorities.
In a letter addressed to Prime minister , Shahbaz Sharif , Deputy prime minister, Ishaq Dar, and minister for Industries and Production , Rizwanullah Khan said Zaka Ashraf and those who signed agreement with government on July 14 ,2025 for fixing ex-mill sugar price and beginning of next crushing season are fake and unauthorised individuals and they have no legal authority to sign any such agreements with the federal government.
Citing factual position on the issue raised in the letter , Rizwanullah Khan said Zaka Ashraf and Co spoiled PSMA by illegally grabbing its office in December last and they are now presenting themselves as PSMA elected office bearers at government level, but in fact they are intruders.
Zaka Ashraf ‘s intrusion into PSMA is already questioned before the Islamabad High Court (IHC) and pending for a final decision.
Zaka Ashraf and some other millers had jumped into PSMA affairs to sabotage election of Abbas Sarfraz Khan as PSMA chairman for 2024-26. Rizwan Allah Khan took the matter to DGTO which intentionally delayed the issue to illegally grant favour to Zaka Ashraf to hold an illegal election of PSMA and obstruct its elected body from functioning for PSMA. Since DGTO has not done his job of deciding PSMA case of elections in time ,it encouraged Zaka Ashraf and Co to grab PSMA office and hold meetings with government illegally.
Its a sad story, a gang led by Zaka Ashraf and fully pampered by DGTO has dented PSMA credibility and now this unlawful gang is presenting itself for meetings with the federal government.
Rizwanullah Khan is struggling at every level to get justice in PSMA case and now he has brought the matter into the notice of the prime minister and other tip government functionaries in writing.
In his letter Rizwan Khan said Mr. Zaka Ashraf of Ashraf Sugar Mills Limited is holding meetings with the
Federal Ministers for the Sugar Sector without any lawful authority. Mr. Imran Ahmed, Former Secretary General of PSMA has executed an agreement dated 14.7.2025 (Annex A), on behalf of PSMA with the Federal Minister for National Food Security, on behalf of the Federal Government.
Since this agreement is the outcome of the meetings of Mr. Zaka Ashraf and his team with the Federal Ministers, it has no legal value for the reasons stated in the subsequent paragraphs.
Brief facts about the prevalent situation of PSMA are summarized below: The tenure of the Executive Committee of 2022-24 expired on 30.9.2024.
The election process of PSMA for 2024-26 was conducted by the legally appointed Election Commission in September 2024 according to law and the term of new Executive Committee of 2024-26 commerced on 01.10.2024, followed by the election of Chairman on 7.10.2025, wherein, Mr. Abbas
Sarfaraz Khan was declared as the Chairman of PSMA by the legally appointed Election Commission.
iv. Nonetheless, the election process of PSMA, to the extent of Executive Committee (Centre) and the Vice Chairman and Regional Committees for 2024-26, duly approved by the legally appointed Election Commission, stood completed and reported to the Regulator; which attained finality after
the clarification issued by the Regulator vide its letter dated 03.10.2024 (Annex C. vi. (A complete list of the elected body is enclosed as Annex B.) However, the retired Chairman (Mr. Asim Ghani Usman) started creating problems for PSMA and the election of the newly elected Chairman (Mr.
Abbas Sarfaraz Khan) was disputed by him, whereas, the matter is sub judice in the Islamabad High Court (CMA 2/2025). No legal forum (DGTO, Federal Government or the Court) has declared the
election of the Executive Committee held in September 2024 as illegal, invalid or void.
Therefore, the Executive Committee, along with its Vice Chairman elected in the election held in September 2024 is alive, existent and fully functional for all the legal and practical purposes, w.e.f. 01.10.2024 and will continue its tenure till 30.9.2026. In an unanticipated manner, in January 2025, the retired Chairman, Mr. Asim Ghani Usman, once again started created problems for PSMA with the support of the retired committee of 2022-24, who, being aliens/ intruders, illegally jumped into the affairs of PSMA and initiated the process of fresh election by appointing an illegal Election Commission and issued the Election Schedule without any lawful mandate.
The Regulator vide its letter 03.2.25 (Annex D) had already taken cognizance of the unlawful Election Schedule issued by the retired Committee. The illegal Election Commission conducted an illegal exercise and conducted the Election on 2 Zones basis instead of 3 Regions and announced the illegal result on 14.4.2025, thereby, illegally declaring Mr. Zaka Ashraf as Chairman. In light of the above, the Chairmanship of Mr.Zaka Ashraf is the outcome of an illegal election. In any case, Mr. Zaka Ashraf was ineligible to contest the election of Chairman as per article 18 (v) of the Articles of Association of PSMA, rule 21(15) of TO Rules, 2013 and the clarification issued by DGTO vide letter dated 3.10.2024. This is due to the fact that his son Mr. Khan Muhammad Ashraf, the authorized representative of Ashraf Sugar Mills Limited, has served as the Chairman (Punjab Region) during last term (2022-24) and Vice
The Complainant has submitted two complaints, dated 11.4.2025 and 18.4.2025, against said illegal exercise which are pending before the DGTO. The DGTO vide its order dated 29.5.2024 (Annex E) pased an Interim Order restraining the aforesaid illegal Committee led by Mr. Zaka Ashraf from
taking any action on behalf of PSMA.
xii. However, keeping in view the problems of the employees and to pay other day-to-day expenses, the DGTO vide its Modified Order dated 13.5.2025 (Annex F) had permitted only the following expenses/activities:
1. Payment of employes’ salaries, rent, utilities, taxes, regulatory fees and insurance premia;
2. Purchase of routine office supplies and services not exceeding PKR 5000,000 per single transaction;
Prayer 3. Filing of statutory returns or compliance documents required by lato (e.g. SECP, FBR, EOBI) and 4. Maintenance of existing bank acounts solely for the purpose listed in
(1)-(3) . Crux of the above facts and the legal position.
The crux of the above is that the illegal Executive Committee led by Mr. Zaka Ashraf has become fully functional and conducting all the affairs of PSMA including holding of meetings with Deputy Prime Minister and the Federal Minister for National Food Security, and is doing so without any lawful authority and in blatant violation of the Modified Interim Order dated 13.05.2025.
Since the legally elected Executive Committee, along with its Vice Chairman and Regional Committees for 2024-26, elected in the Election held in September 2024 (duly approved by the legally appointed Election Commission) is alive, existent and fully functional for all the legal and practical purposes w.e.f. 1.10.2024, and will continue its tenure till 30.9.2026, therefore, it is respectfully prayed that no meetings be convened with the illegal Executive Committee, nor should Mr. Zaka Ashraf or any other unauthorized individual be entertained in any matter pertaining to the PSMA, as their involvement is unlawful and without any binding legal effect.