ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday directed key government agencies, including the Federal Board of Revenue (FBR), the Federal Investigation Agency (FIA), and the Intelligence Bureau, to take immediate and coordinated action to tackle the growing issues of hoarding, tax evasion, and rising sugar prices.

The decision comes ahead of the sugarcane crushing season, a critical period when sugar production spikes, and market manipulation often leads to price hikes. The Prime Minister’s directive focuses on ensuring the full recovery of General Sales Tax (GST) from sugar mills and dealers. This move is aimed at addressing long-standing problems of tax evasion in the sugar sector, which has led to a lack of transparency and inefficient revenue collection. The Prime Minister also emphasized the installation of surveillance cameras at sugar mills to monitor production processes, detect hoarding, and ensure proper tax compliance. These cameras will track the volume of sugar produced, reducing the possibility of stockpiling, which has previously contributed to artificial price hikes. Prime Minister Sharif made it clear that there would be zero tolerance for any increase in sugar prices. He warned that any sugar mill owners found guilty of hoarding or evading taxes would face strict legal action. He also spoke out against the “satta mafia” (price manipulators), vowing that the government would not allow these groups to control the market and exploit consumers. His comments underline the government’s firm stance on stabilizing the sugar market and protecting consumers from unjust price hikes. In addition to addressing sugar price manipulation, the Prime Minister directed the authorities to implement similar measures in other sectors prone to price manipulation and tax evasion, such as steel, cement, cigarettes, and beverages. These sectors have also faced criticism for contributing to market distortions and for evading tax obligations. The government’s aim is to create a more transparent and accountable market environment by eliminating illegal practices across industries.  This initiative is part of the government’s broader effort to improve the country’s tax system and regulatory frameworks. By addressing key sectors like sugar, the government hopes to restore public trust in its ability to enforce fair market practices and stabilize essential commodity prices. The move also seeks to reduce the influence of corrupt practices, such as hoarding and price manipulation, which have long plagued Pakistan’s markets.

The decision comes as public concern over the rising cost of living continues to grow. Essential goods, particularly sugar, have seen significant price hikes, putting additional pressure on households. According to recent reports, sugar prices in retail markets have soared, with price manipulation and stockpiling contributing to the crisis. The government’s intervention is seen as a necessary step to curb these issues and alleviate the burden on consumers. In his remarks, the Prime Minister emphasized the importance of transparency in the sugar sector, noting that the government would hold those responsible for illegal practices accountable. The installation of surveillance cameras at mills is expected to ensure that production volumes are accurately recorded, taxes are properly paid, and sugar stockpiling is prevented. The government has also vowed to increase its oversight in other sectors, such as the steel and cement industries, where price manipulation and tax evasion have also been persistent problems. The broader goal is to create a more efficient and transparent economy, which can foster fair competition and ultimately benefit consumers. Prime Minister Sharif’s intervention is part of a wider strategy to address Pakistan’s ongoing economic challenges, including high inflation and a growing fiscal deficit. Recent data shows that inflation, particularly in essential food items like sugar and wheat, has continued to rise, exacerbating the financial strain on families. By tackling price manipulation and tax evasion, the government aims to restore stability to essential commodities markets and ensure that the public is not unfairly exploited. With the sugarcane crushing season approaching, the government is taking proactive measures to prevent any disruption in the supply of sugar and to ensure that prices remain stable. The Prime Minister’s directive sends a clear message that the government is committed to improving market regulation, boosting public confidence, and ensuring that essential goods remain affordable for all. This move is expected to bring relief to consumers while improving fiscal discipline across key sectors.

The government’s tough stance on market manipulation and illegal practices is seen as a necessary step to restore credibility in Pakistan’s economic governance and improve the overall business environment.