Govt to probe sugar imports.

The Ministry of Industries has submitted proposals to the Economic Coordination Committee (ECC) for consideration.

Firstly, it proposed tender for import of 200,000 metric tons of sugar. Secondly, due to high price for the current tender, it proposed to scrap the tender. The third option was to call for a fresh tender for import of sugar.

The economic decision making body held threadbare discussion on the import of sugar after they were informed that the current sugar reserves stood at 1.18 million MT, which will be exhausted by end-October 2021.

Finance Minister Shaukat Tarin, who also chairs the ECC, observed that the ECC and the federal cabinet took a decision on import of 500,000 MT sugar in January, 2021.

Since then only 100,000 MT sugar was imported. During this period, a number of tenders for importing sugar were scrapped for reasons not recorded. It observed that the import of sugar was now being proposed at a higher cost, which may result in substantial loss to the national exchequer.

The ECC members argued that there was a need to look into reasons for non-procurement of sugar through import immediately after the decision by the ECC and cabinet in January 2021.

It sought reasons for scrapping tenders for import of sugar. It raised questions about the authority that decided to scrap the tenders and financial loss to be accrued as a result of late import of sugar.

The ECC of the cabinet considered the summary submitted by the Ministry of Industries and Production on 'Import of Sugar for Strategic Reserves' and approved the first option of tender for import of sugar.

The ECC also constituted a committee under the chairmanship of Finance Division secretary, comprising Industries and Production Division secretary, Commerce Division secretary, National Food Security and Research secretary and Law and Justice Division secretary.

The committee will look into reasons for non-procurement of sugar through import immediately after the decision by the ECC and cabinet in January 2021.

Secondly, it will also probe reasons for scrapping tenders for import of...