Islamabad:
When qualifying the recent increase in sugar prices, a “sugar scandal”, the Public Accounts Committee (PAC) interrogated the president of the Federal Income Board (FBR) and the Secretary of National Food Security Security on sugar exports, imports and changes in tasks.
During the meeting chaired by Junaid Akbar Khan, PAC members raised serious questions about the management of the Government of the Sugar Trade Policy. President Khan criticized the inconsistency of the FBR, stating: “When it comes to public difficulties, the FBR blames the IMF. But when it comes to investors, they do not even bother to follow the IMF directives.” He added that certain investors seem to receive improper benefits.
The PAC member, Khawaja Shiraz, questioned under what mechanism 750,000 tons of sugar were exported. In response, FBR president, rashid langial, said the cabinet make such decisions based on the recommendations of the Ministry of Food. He added that the FBR simply implemented the cabinet directive to abolish the duty of Customs of 20% on sugar imports and reduce sales tax from 18% to 0.25%. The anticipated tax was also reduced from 5.5% to 0.25%, he said.
The PAC member, Naveed Qamar asked why the Government had not regulated sugar prices and questioned the role of the competence commission in verification of the alleged cartelization. “Who allowed sugar posters to take over the market?” asked.
Moin Amir Pirzada said that neither Murad Ali Shah in Sindh or Maryam Nawaz in Punjab seemed to have the authority to act against sugar factories. He proposed that sugar factories be liberalized so that anyone could establish a mill, breaking the monopolies.
When asked about the representation at the Sugar Advisory Board, Food Secretary confirmed that although all interested parties were represented, there was no representation of the consumer. Pirzada criticized the omission, asking how a Board could be considered representative if it excluded consumers most affected by price increases.
