Islamabad: Pakistan refused to provide subsidies on the export of sugar to Tajikistan, as requested by the latter.. The government has agreed to export 40,000 metric tons of sugar to Tajikistan without any financial aid or subsidies.
Tajikistan had been demanding a subsidy in the export package. However, this time around, the Economic Coordination Committee meeting rejected it. “We reject any notion of any subsidy and the negotiations for preferential pricing may continue,” the ECC said.
In a separate development, the Pakistani government had also approved the export of 0.1 million tonnes of sugar. The government warned sugar millers that their export privileges could be revoked if they fail to pay outstanding dues to sugarcane growers.
In the ECC meeting, the Commerce Division explained that the Trading Corporation of Pakistan (TCP) would assist the Industries and Production Division in negotiations with the Tajik government. However, the Industries and Production Division, in coordination with the Pakistan Sugar Mills Association (PSMA), would take the lead.
The ECC further clarified that since the sugar export to Tajikistan would be done via land, there would be no port handling fees involved. Earlier, the Tajik government had requested financial assistance to cover Karachi port fees, but this request became unnecessary with the land route arrangement.
During a previous visit by Pakistan’s prime minister to Tajikistan, the Tajik prime minister discussed purchasing 40,000 tonnes of sugar from Pakistan at discounted rates. Tajikistan formally followed up with a request for both preferential prices and a subsidy for the export.
After assessing sugar stock levels, Pakistan’s Sugar Advisory Board (SAB) confirmed that there were sufficient surplus stocks to meet the export demand of 40,000 MT to Tajikistan. The Federal Board of Revenue (FBR), provincial cane commissioners, and the PSMA confirmed the availability of surplus sugar for export.
The ECC approved the export proposal for 40,000 MT of sugar to Tajikistan and put the ministry in charge of negotiating the deal. The TCP will coordinate the talk and all subsequent decisions taken after this will be brought before the ECC. It was emphasized that there would not be any subsidy in the deal.
