The latest IMF report has highlighted in detail the significant influence sugar mill owners have exercised over Pakistan’s government policies, revealing how they leveraged their positions to shape economic and trade frameworks in ways that directly benefited their business interests. In its governance and corruption assessment, the IMF has pointed out persistent concerns regarding corruption at the federal level and has urged Pakistan to immediately begin implementing a comprehensive 15-point reform agenda aimed at improving transparency, accountability, and policy discipline.
According to the report, influential sugar mill owners holding public office used their authority to ensure policies remained profitable for them, rather than promoting fair market competition. The IMF stated that these groups actively influenced export decisions and price-setting mechanisms, and despite having sufficient stocks available, they deliberately created an artificial shortage of sugar in the local market. This coordinated manipulation enabled them to increase prices and secure greater financial gains at the expense of consumers.
The report further notes that the decision taken by the PTI government in 2019 to allow sugar exports is a clear demonstration of how the country’s elite have continued to dominate and benefit from policy-making processes. It states that the official sugar inquiry also identified politically powerful individuals as being responsible for the crisis, confirming that the export pressure contributed directly to the rise in domestic sugar prices.
