Government Moves to Curb Rising Sugar Price Across Country
Prime Minister Shehbaz Sharif has ordered immediate action against the artificial sugar price hike.
The move aims to counter inflation and stabilize the economy.
The decision came after market reports revealed an unjustified surge in sugar price, affecting millions of households nationwide. The sugar price hike has become a pressing issue as it directly impacts the daily lives of ordinary citizens.
On August 7, 2025, the PM chaired a meeting to review the price hike. The meeting included top officials from the Ministry of Industries, Finance Division, Pakistan Sugar Mills Association (PSMA), and relevant law enforcement agencies.
Strict Monitoring and Raids to Stabilize Sugar Price
The Prime Minister directed authorities to initiate a strict crackdown on sugar hoarders and profiteers. Intelligence-based raids are underway to uncover hoarded sugar.
The stockpiling is being used to manipulate the market and raise prices artificially.
Federal and provincial governments have been directed to form joint monitoring committees.
These committees will ensure smooth sugar availability and control sugar prices. The government has also ordered daily reporting of price movements in both wholesale and retail markets.
In an official statement, PM Shehbaz said, “The unjustified rise in sugar prices will not be tolerated. We are committed to providing relief to the common man and ensuring food items remain within their purchasing power.”
Sugar Price Surge Due to Artificial Shortage
The Ministry of Industries reported a bumper sugarcane crop and sufficient stock.
Yet, some market players are creating an artificial shortage to raise sugar prices for profit. The government has now initiated audits of sugar mills and distributors to trace the root of this manipulation.
Pakistan’s Competition Commission has also stepped in to investigate cartelization in the sugar industry, which may be a key driver behind the recent spike in price. If found guilty, companies involved may face heavy fines and penalties.
Impact of Price Hike on Inflation
The surge in sugar prices has had a domino effect on the country’s overall inflation rate. Since sugar is a basic household necessity and a key ingredient in multiple industries like confectionery, beverages, and baking, its rising cost is pushing inflation higher. Experts believe this rise in price could directly affect the cost of living, food security, and industrial production.
According to the Pakistan Bureau of Statistics (PBS), the average sugar price in July 2025 rose by 18% compared to June, marking one of the steepest monthly increases in recent years.
Relief Measures and Future Strategy to Control Sugar Price
To offer relief to consumers, the government is now considering the temporary removal of sales tax on sugar and the possible import of sugar to balance supply. Additionally, the Utility Stores Corporation has been ordered to ensure uninterrupted availability of sugar at subsidized rates.
PM Shehbaz also stressed the need for digitizing the sugar supply chain to monitor inventory and pricing trends in real-time. This technological intervention aims to increase transparency and prevent future manipulation in sugar price.
Furthermore, the Ministry of Commerce has been asked to explore export restrictions until the domestic price stabilizes. This move will ensure that local demand is met first and prevent a repeat of past situations where sugar was exported only to be imported later at higher rates.
Public Reaction to Sugar Price Measures
The Prime Minister’s directive has been welcomed by the general public and consumer rights groups, who have long demanded action against hoarders and middlemen manipulating the sugar price for profit.
However, some traders argue that transportation costs and fuel price increases are partially responsible for the recent rise in prices. They have urged the government to also focus on reducing fuel tariffs and improving logistics infrastructure. “PM Shehbaz responds to 2025 sugar price surge in Pakistan”
Conclusion
The government’s swift response to the escalating price crisis reflects its renewed focus on economic reform and public welfare. With a multi-pronged strategy involving monitoring, legal action, and price controls, authorities aim to bring stability to the sugar market and safeguard citizens from further financial pressure.
As the situation evolves, all eyes are on the administration to see if these measures effectively reverse the upward trend in sugar price and restore balance to the market in the coming weeks. Click here for latest news
