In a strategic shift driven by domestic supply constraints, Pakistan is set to import up to 300,000 tons of sugar through direct government-to-government (G2G) agreements with Azerbaijan, officials confirmed.
🔄 Mutual Trade Arrangement
The deal, initiated after high-level diplomatic visits, will also involve exports of Pakistani commodities to Azerbaijan, signaling a broader bilateral trade framework.
📦 First Shipment in September
The Ministry of National Food Security has finalized a 200,000-ton import deal, with the first consignment expected to arrive in early September. However, concerns loom over the lack of transparency regarding the subsidy structure and landing cost, especially under the scrutiny of the IMF’s fiscal oversight.
💸 Subsidy Sparks IMF Concerns
Sources suggest the subsidy may exceed Rs. 30/kg, a figure that could jeopardize Pakistan’s $7 billion IMF loan program. The IMF has reportedly rejected Pakistan’s “food emergency” justification, urging restraint on further subsidies.
🚨 Crackdown on Hoarding
In parallel, authorities claim to have seized 1.9 million metric tons of sugar allegedly hoarded by private mills. 18 mill owners have been placed on the Exit Control List (ECL). The Pakistan Sugar Mills Association has denied the seizures, calling the situation “administrative chaos.”
🌾 From Surplus to Shortage
Ironically, Pakistan exported 757,000 tons of sugar worth $406.9 million between August 2024 and January 2025, citing surplus stocks. But climate-induced crop losses have since slashed output to 5.8 million tons, well below the 6.3 million tons required to meet domestic demand—forcing a swift reversal in policy.