Pakistan Likely to Import 300,000 Tons of Sugar from Azerbaijan

Pakistan is likely to import up to 300,000 tons of sugar through direct government-to-government (G2G) deals. An official told ProPakistani that the government is negotiating G2G sugar deals with Azerbaijan following high-level visits. The official added that while Pakistan will import sugar, it will also export certain commodities to Azerbaijan. Separately, the Ministry of National Food Security confirmed that a 200,000-ton sugar import deal has been finalized, with the first shipment expected in early September. However, key details remain undisclosed, including the subsidy involved and the final landing cost, raising concerns about transparency in a subsidy-sensitive environment under IMF oversight. An official revealed that the sugar import was approved by a committee led by Deputy Prime Minister Ishaq Dar. While the Prime Minister’s Office stated that the measure aims to “balance prices and provide relief,” it did not provide further details. One source suggested that the subsidy could exceed Rs. 30/kg — a potential red flag for the IMF, which reportedly rejected Pakistan’s “food emergency” rationale and warned that additional subsidies could jeopardize the $7 billion loan program. Last Thursday, authorities claimed to have seized 1.9 million metric tons of sugar stockpiled by private mills and placed 18 mill owners on the Exit Control List for alleged hoarding. The Pakistan Sugar Mills Association denied any seizures, calling the claims “administrative chaos,” while Food Minister Rana Tanveer Hussain accused hoarders of artificially inflating prices. Ironically, Pakistan exported over 757,000 tons of sugar worth $406.9 million between August 2024 and January 2025, citing surplus stocks at the time. However, climate-induced crop losses have since reduced output to 5.8 million tons, far short of the 6.3 million tons needed to meet domestic demand. forcing a sudden reversal in policy.