Pakistan Government Cancels Sugar Import Tender Over High Prices

The Government of Pakistan has reportedly cancelled its plan to import 100,000 tonnes of sugar. This decision was made after all bids submitted by private companies failed to meet official standards.

On August 3, the Trading Corporation of Pakistan (TCP) invited bids for importing sugar. However, according to official sources, none of the offers matched the government’s expectations in terms of price, quality, and specifications.

The lowest bid for fine granulated sugar was $539 per tonne, while another company quoted $567 per tonne. A separate bid for medium-sized sugar was even higher, at $599 per tonne. Authorities said these prices were too expensive and did not meet the required quality.

Officials also noted that accepting the bids would mean extra expenses. These include cargo handling at Karachi Port, unloading charges, loading onto trucks, and transportation costs to distribute sugar across the country.

No Shortcuts Allowed

Government sources confirmed that the sugar import process must follow strict rules. They promised that no procedural violations will take place. Authorities added that there will be no compromise on sugar quality or pricing transparency.

IMF Raised Concerns

The International Monetary Fund (IMF) had earlier raised concerns about Pakistan’s plan to offer subsidies on imported sugar. The government was considering a Rs55 per kg subsidy, which would reduce the cost of imported sugar from Rs249 per kg.

The IMF warned that such subsidies could negatively affect the $7 billion loan agreement with Pakistan. They urged the government to avoid non-targeted financial support that could increase the country’s fiscal deficit.