The Pakistan government has cancelled a tender to import 100,000 metric tonnes of sugar, citing high costs and quality concerns. The move comes just days after the Trading Corporation of Pakistan (TCP) issued the tender on August 3.
Official sources say the decision was made after none of the submitted bids met the required standards. Three companies participated in the tender process, but their offers were rejected due to pricing and quality issues.
The quoted prices for fine granulated sugar ranged between $539 and $567 per tonne. Medium-quality sugar was offered at $599 per tonne. These rates were deemed too high by the authorities.
In addition to pricing issues, the government would also have faced extra costs. These included cargo handling at Karachi Port, as well as unloading and transport charges to distribute the sugar across the country.
Officials confirmed that no deals would be finalized if the required specifications were not met. They stressed that there would be no compromise on price or quality.
The cancellation of the Pakistan sugar import tender also follows recent concerns raised by the International Monetary Fund (IMF). The IMF had warned Pakistan against offering subsidies or tax exemptions on sugar imports, citing risks to the ongoing $7 billion loan program.
The IMF particularly opposed the government’s plan to provide a subsidy of Rs55 per kilogram on imported sugar, which was expected to cost Rs249 per kg on arrival. This potential move was seen as conflicting with Pakistan’s broader economic reform commitments under the IMF deal.
The decision to cancel the sugar tender is expected to impact local markets, where sugar prices have already been rising. However, the government appears focused on ensuring financial discipline and avoiding further strain on the national budget.
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