ISLAMABAD : November 2,2022: Despite having 1. 2 million tons of sugar in stocks, besides brighter prospects of a bumper sugarcane crop this year, an insane decision of Shahbaz government of not exporting surplus commodity stocks has cost Pakistan over $ one billion.
Pakistan has huge surplus stocks of sugar and it could earn desperately- needed foreign exchange of $ over one billion by exporting extra stocks . Instead , taking a wise decision and earn $ over one billion by exporting surplus one million tons of sugar , the Shahbaz government preferred a politically motivated decision and denied export of surplus sugar.
NEWSMAN sources said the federal cabinet chaired by prime minister , Shahbaz Sharif , discussed summary for export of surplus sugar more than once in recent months ,but each time it held political approach and rejected the proposal noting that any such decision may be exploited by the opponents for political gains.
This approach suggests Shahbaz government compromised the national interest just on an assumption that export of surplus stocks of sugar may provide an opportunity to Pakistan Tehreek e Insaf (PTI) to make some political point scoring against it.
Pakistan is in dire constraints financially and its pleading to the International donors like International Monetary Fund (IMF) to get loans . Pakistan is compromising its soverignity for loans from international donors and its glaring example is recent loan of $ 1.17 billion taken by the incumbent government from IMF.
In such an apologetic rather shameful environment ,losing foreign trade of $ over one billion is a serious issue. Rather , its a case of loss to the national kitty for just political approach.
Pakistan annually need around 5.5 million tons sugar for its domestic consumption and over and above stock to its need simply creates glut in the market . The sugar sector stakeholders are like a chain. Its begins from the farmers and ends at the end consumers –the masses. The sugar industry operates like an interlocutor between the farmers and end consumers of sugar . If any stakeholder of the sugar sector suffers for any reason, others also have its impact .
For example , if the industry gets into financial crisis other stakeholders, in particular, the farmers and government cannot avoid it. The farmers get good price of their crop provided the industry gets sufficient funds to pay them for their crop.
In other words, the future and prosperity of the farmers is directly linked to financially well off of the industry.
The farmers work hard on their farms of sugarcane for a full one year with a hope that they will get good price of their crop from the industry and make their lives happier, but they get disappointment if industry fails to pay in time and good price of their produce.
The government decision of not exporting surplus sugar is going to hurt the growers in near future . The industry will not go into crushing season as they can not afford more glut in the market as the commodity price was already at the lowest level and the industry is reporting losses of billions this year .
Another fallout of the government’s bad decision could be in shape of less rates of sugarcane to the farmers in upcoming crushing season.
Iskander Khan, chairman Pakistan Sugar Mills Association (PSMA) Khyber Pukhtunkhaw (KPK) , expressed grave concern over the government’s indifference towards sugar sector. He strongly believes ,denial of export of surplus sugar and losing foreign exchange of $ over one billion was like showing enmity to the state and its people.
” Its extremely sad that the government in office intentionally missed an opportunity to export surplus sugar and earn $ over 1 billion in foreign exchange”, Iskander Khan asserted.
He also believes that the industry will not be in a position to start fresh crushing in near future when it has huge stock of 1.2 million tons in surplus .