Govt allows 108,000MT sugar export

Pakistan's government on Wednesday approved the export of 108,000 metric tonnes of sugar that was brought in last year, a step the Express Tribune says could push up domestic prices. The Economic Coordination Committee, under Finance Minister Muhammad Aurangzeb, cleared the Trading Corporation of Pakistan to seek buyers through an international tender. The sale will be conducted under the PPRA regulations of 2004, according to an official announcement.

Of the 500,000 tonnes originally approved for import, 300,000 tonnes were brought in, and about 108,000 tonnes remain after two domestic sale attempts fell through on lower local prices. The paper notes that the export move runs against Pakistan's pledge to the International Monetary Fund to end state intervention in the commodity market.

Current sugar prices average Rs148 per kg, 18% lower than a year ago, after output improved this year. Separately, the prime minister reviewed the external account, where food group imports rose from $8.20 billion to $9.15 billion last fiscal year as exports shrank. The food ministry has urged a review of sugar export approvals, domestic stock levels and import needs so the country does not slide from exporting back to importing.