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The government on Friday approved the export of an additional 500,000 metric tons of sugar. This decision comes amid concerns of manipulated stock figures and consumption patterns, reflecting the strong influence of sugar barons on policy-making.
The Economic Coordination Committee (ECC) based the approval on conflicting data compared to previous reports. This decision raises questions about transparency and the credibility of the cabinet in making such critical choices.
Conflicting Reports Raise Transparency Issues
The ECC’s decision contradicted the official stock and consumption data presented on September 20, when it approved 100,000 metric tons of sugar export. The new approval relied on data that showed lower consumption figures, leading to an apparent surplus.
Federal Minister for Industries, Rana Tanveer Hussain, justified the decision by citing seasonal factors, which he said would result in lower sugar consumption from October to December. He added that mills must start crushing by November 21, or the export permission would be revoked.
Secretary of Industries, Saif Anjum, defended the decision, saying the revised numbers were based on actual data rather than forecasts.
Manipulated Figures and Potential Shortages
Despite claims of surplus stock, a comparison of summaries from September 18 and October 10 suggests possible data manipulation. The original figures indicated monthly consumption of 564,353 tons. However, in the October report, this figure dropped to 450,000 tons, showing a larger surplus than initially reported.
If the earlier figures are accurate, the country could face a shortage, with only 336,000 tons of sugar remaining after the export. This stock would last barely three weeks, potentially triggering a price hike and market shortages.
Influence of Sugar Barons on Policy
Since coming to power, Prime Minister Shehbaz Sharif has approved the export of 790,000 metric tons of sugar. His family, alongside other politically influential figures, owns sugar mills, raising concerns about conflicts of interest and manipulation of policy to benefit personal interests.
The Ministry of Industries assured that enough sugar would remain for the final two months of the crushing year. However, concerns linger, with evidence suggesting that stock figures were artificially altered to show a surplus, making the additional exports possible.
Compensation for Chinese Workers
In the same ECC meeting, the committee approved $516,000 in compensation for the families of two Chinese nationals killed in a suicide attack on October 6. One other worker was injured, and the ECC approved financial support for him as well.
