ISLAMABAD: Prime Minister Shehbaz Sharif announced yesterday that Pakistan has earned $500 million through the export of surplus sugar, a decision that has significantly boosted the country’s foreign exchange reserves.

Speaking during a meeting to review Pakistan’s economic situation and digitisation reforms at the Federal Board of Revenue (FBR), the PM highlighted the timely export of sugar as a key driver of this financial gain. The Pakistan Sugar Mills Association (PSMA) had recommended the export of up to one million tons of refined sugar in phases earlier this year, with an expected $650-700 million in foreign exchange. In response, the government allowed the export of 150,000 tons of sugar, which was later extended by an additional 100,000 tons. Furthermore, 40,000 tons of sugar were exported to Tajikistan on a government-to-government basis, and another 500,000 tons were approved for export in October 2024.

PM Shehbaz emphasized that the decision to export surplus sugar was critical, especially as the country started the new crushing season with over 1.08 million tons of surplus sugar stocks. The prime minister also expressed satisfaction with the ongoing economic reforms, particularly in the FBR, where digitisation efforts are set to transform revenue collection systems. He instructed authorities to complete key digitisation initiatives at the FBR by December 31, 2024, and ensure that the complete digitisation of FBR’s value chain is finalized by March 2025. Additionally, the PM noted a significant rise in petroleum sales, which reached a 25-month high of 1.58 million tons in November 2024, driven by reduced fuel prices and a crackdown on smuggling. He urged further actions to combat petrol smuggling and ensure steady progress in the energy market.