ISLAMABAD: The federal government is considering selling its remaining imported sugar stocks at approximately Rs. 110 per kilogram, a move that could leave the national exchequer facing an estimated financial loss of Rs. 8 billion.
The proposal involves around 108,000 metric tonnes of sugar currently held by the Trading Corporation of Pakistan (TCP). The proposed selling price is considerably lower than the reserve price of Rs. 184.80 per kilogram previously established by the government.
The Ministry of Commerce and TCP have reportedly approached the government for approval after receiving fresh offers from international buyers. The latest development follows an unsuccessful attempt to sell the surplus sugar through an earlier export tender.
According to reports, the government is considering the reduced price because previous efforts to attract international buyers failed to generate acceptable offers.
TCP opened its latest international tender on November 13 and received three bids from foreign trading companies.
The lowest offer came from UAE-based Rahul International Trading LLC, which quoted $386 per metric tonne. General Trading LLC submitted a bid of $395 per tonne, while Sputnik Global Trading LLC offered $400 per tonne.
At the exchange rate of Rs. 280 per US dollar used in the tender documents, these offers translate into approximately Rs. 108 to Rs. 112 per kilogram.
However, the companies have reportedly offered to purchase only around 50,000 metric tonnes, representing less than half of the available stock. The government will now have to decide whether to accept the offers and proceed with the proposed sale.
The financial implications have become a major concern because the proposed rate is substantially below the earlier reserve price.
According to a written response submitted by Commerce Minister Jam Kamal Khan to the National Assembly on October 26, 2026, Pakistan imported 306,737 metric tonnes of sugar at a total cost of approximately Rs. 54.16 billion.
The expenditure included additional charges and financing costs associated with the imports.
The minister informed parliament that TCP had already sold 198,668.30 metric tonnes at a weighted average price of Rs. 168.24 per kilogram.
Meanwhile, 108,069 metric tonnes remained in government warehouses as of August 31, 2026.
Pakistan arranged the sugar imports between September and November 2025 following concerns over domestic shortages and rising market prices. The government aimed to improve market supplies by bringing additional refined sugar into the country.
TCP initially attempted to dispose of the remaining stock through an international export tender issued in September 2026.
For that exercise, the corporation established a minimum reserve price of Rs. 184,800 per metric tonne, equivalent to Rs. 184.80 per kilogram.
However, the tender failed to attract any international buyers when bids were opened on September 30.
The high reserve price was considered a major obstacle because international white sugar prices were reportedly trading at around $505 to $515 per tonne at the time.
Following the unsuccessful attempt, the government moved towards a revised tender strategy without setting a minimum reserve price. The latest bidding process was intended to attract international buyers and reduce the surplus inventory.
The remaining sugar is stored at TCP’s Pipri warehouse in Karachi, where storage and financing expenses continue to add to the government’s financial burden.
The proposed sale has renewed concerns about the financial management of essential commodities and the planning behind last year’s sugar imports.
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For now, the government has yet to announce a final decision on the latest bids. The actual financial impact will depend on the quantity sold, the approved price and the terms of the transaction.
