KARACHI – Amid fiscal tightening, Trading Corporation of Pakistan slashed sugar imports, reconsidering tax incentives.
TCP reduced its sugar import target, issuing fresh tender to procure mere 50,000 metric tons, a sharp cut from its earlier plan to import 3Lac metric tons.
This revision comes as part of broader reconsideration of Pakistan’s sugar import strategy. Initially, the federal government intended to import 500,000 metric tons of sugar, with 300,000 tons handled by TCP and the remaining 200,000 tons through private sector channels.
In revised tender, TCP invited bids from international suppliers and dealers, with a submission deadline of July 22, 2025.
The decision comes amid warnings from International Monetary Fund (IMF), which expressed concerns over proposed tax subsidies for sugar imports. IMF said such fiscal concessions could undermine Pakistan’s $7 billion loan programme, pressuring authorities to adjust their policy to ensure compliance with the fund’s guidelines.
In response, the government is not only downsizing import volume but is also reviewing the possibility of withdrawing tax exemptions granted to private sugar importers.
The move shows growing fiscal caution as Pakistan works to meet conditions tied to the IMF bailout while balancing domestic market demands and inflationary pressures.
