Prime Minister Shehbaz Sharif announced on Thursday that Pakistan has earned $500 million in foreign exchange through the export of surplus sugar, attributing the achievement to timely government decisions. The premier made the remarks while chairing a meeting to review the country’s economic situation and digitization reforms in the Federal Board of Revenue (FBR), according to a statement from the Prime Minister’s Office (PMO).
“Timely decision to export sugar has generated $500 million in valuable foreign exchange for Pakistan,” said the prime minister.
In June 2024, the Pakistan Sugar Mills Association (PSMA) had proposed that the government allow the export of one million tons of refined sugar in phases, estimating that the move could generate $650-700 million in foreign exchange.
The government initially permitted the export of 150,000 tons of sugar, later extending the quota by 100,000 tons. Additionally, 40,000 tons were exported to Tajikistan on a government-to-government basis. On October 8, 2024, the government approved the export of 500,000 tons of sugar.
The PSMA has since requested further export permissions, citing a surplus of 1.08 million tons of sugar at the start of the new crushing season.
During the meeting, PM Shehbaz highlighted the importance of digitization in the FBR as a key milestone in the government’s economic reforms. He called for a data-driven approach to enhance revenue collection and directed strict measures to improve the taxation system. The prime minister instructed authorities to complete key digitization initiatives at the FBR by December 31, 2024, while the full digitization of the FBR’s value chain is expected to be finalized by March 2025.
The prime minister also noted a significant increase in petroleum sales, which reached a 25-month high of 1.58 million tons in November 2024. He attributed the rise to a strict crackdown on smuggled fuel and a reduction in petrol and diesel prices. Year-on-year petroleum sales in Pakistan increased by 15%, signaling a recovery in the energy market. PM Shehbaz called for intensified efforts to combat petrol smuggling.
The meeting was informed that video analytics installation for the sugar industry has been completed, while the design work for similar analytics in the cement industry has been finalized. The prime minister directed the swift installation of video analytics in the cement sector.
Additionally, a mobile app for digital invoicing aimed at small businesses is set to be completed by the end of December 2024. A central assessment unit for faceless customs assessment has also been established in Karachi and will begin operations on December 31, 2024.
