IMF Demands Sugar Sector Deregulation, But Progress Remains Slow. The federal government of Pakistan has struggled to implement reforms, while provinces delay provincial legislation on sugar. The International Monetary Fund (IMF) had set a clear March 2026 deadline, yet little progress has been reported. This slowdown affects the deregulation of the sugar sector, which aims to improve sugarcane farmers’ profits and boost private sector sugar trade.
The sugar industry reform in Pakistan involves ending government intervention in pricing, supply management, and procurement systems. After deregulation, sugar mills will operate freely, and farmers can sell their crops to any mill. Currently, surplus sugar production often creates price fluctuations because of government-controlled trade. Experts argue that lifting export restrictions could stabilize prices and increase profits for growers.
Government intervention in sugar pricing has historically limited farmers’ earnings, and provincial hesitation has delayed policy implementation. Sugar mill establishment rules remain restrictive, preventing new private sector operations. Deregulation of the sugar sector and the agricultural sector together could create a competitive market. If properly executed, these reforms may increase supply efficiency, reduce artificial shortages, and attract private investment.
Despite the delays, officials insist the June exit plan is feasible if provinces pass legislation quickly. Private sector sugar trade and supply management will be key to making deregulation effective. Farmers and mill owners are watching closely, as higher transparency and market freedom could significantly impact sugarcane crop profitability.
In conclusion, the IMF demands sugar sector deregulation, but progress remains slow due to provincial delays and existing regulatory hurdles. Successful reform could boost sugarcane farmers’ profits, stabilize pricing mechanisms, and strengthen Pakistan’s sugar industry.
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IMF demands sugar sector deregulation, but progress remains slow as reforms aim to boost sugarcane farmers’ profits.
