Financial discussions between Finance Minister Aurangzeb and CCP Chairman Sidhu, revolving around strategies to secure market stability, amidst the sugar crisis.
The Competition Commission of Pakistan (CCP) has been actively working to combat sugar cartelization and stabilize the sugar market, as revealed in the latest updates.
In a briefing to Finance Minister Muhammad Aurangzeb, CCP Chairman Dr. Kabir Ahmed Sidhu detailed the causes of previous sugar crises in 2008-09, 2015-16, and 2019-20. He also shared the CCP’s enforcement actions against cartelization in the sugar sector. The Finance Minister reiterated full government support for CCP’s efforts to expedite court proceedings, strengthen its institutional capacity, and promote a competitive, transparent market environment in the sugar sector.
One of the key issues identified by the CCP is the alleged submission of incorrect production and stock data by sugar mill owners to the Sugar Advisory Board for nearly two decades. This practice, it is claimed, has contributed to recurring sugar shortages in Pakistan. To address this, the CCP recommends using data from independent sources such as sugarcane commissioners instead of relying on industry-provided data.
The CCP has also proposed deregulating the entire sugar sector, arguing that government intervention has distorted competition. Their strategy calls for eliminating public sector control over sugarcane production and sugar manufacturing as a sustainable solution to avoid cartelization and stabilize the market.
The CCP’s 2021 order issuing a Rs44 billion penalty on the Pakistan Sugar Mills Association (PSMA) and its members for cartelization was remanded by the Competition Appellate Tribunal, instructing a rehearing. The rehearing was initially scheduled for August 4–7, 2025 but postponed to September 22–25, 2025, following requests from sugar mills. The CCP is determined to proceed without further delays and aims to address allegations of anti-competitive behavior thoroughly.
In addition, the meeting examined administrative and regulatory measures to stabilize the sugar market, and proposals to strengthen the CCP’s institutional capacity to promote economic efficiency, protect consumers, and ensure a transparent, competitive business environment were discussed.
Pakistan has also received offers for a 100,000 metric tons white sugar tender, according to traders, although this fact is not directly related to the CCP's ongoing efforts.
Overall, the CCP is intensifying its efforts through legal action, data verification reforms, and proposals to deregulate the sugar industry to dismantle cartel structures and protect consumer interests in Pakistan’s sugar market. A robust competition framework, according to the finance minister, is essential for protecting consumer interests, ensuring market transparency, and sustaining economic growth.
- The CCP's efforts to dismantle cartel structures in the sugar industry are aimed at promoting economic growth and protecting consumer interests, as advocated by the Finance Minister.
- One of the administrative measures proposed by the CCP to stabilize the sugar market is to eliminate public sector control over sugarcane production and sugar manufacturing.
- To address the issue of alleged incorrect data submission by sugar mill owners, the CCP recommends the use of data from independent sources such as sugarcane commissioners.
- The CCP's 2021 order issued a Rs44 billion penalty on the Pakistan Sugar Mills Association (PSMA) for cartelization, but the Competition Appellate Tribunal has remanded the case for a rehearing, scheduled for September 22–25, 2025.
