Pakistan’s Federal Board of Revenue (FBR) announced a 54% rise in sugar sales tax revenues over the preceding two months. This increase is due to arrears recovery and industry reforms.
Despite budgetary progress, sugar prices remain high at Rs170 per kilogramme. This price surge is attributed to increased sugar exports, mainly to Afghanistan, which have tightened domestic supply. Sugar exports rose 2,188% to 757,597 tonnes in the first seven months of FY25 from 33,101 tonnes last year.
Finance Minister Muhammad Aurangzeb said strict sugar sector reforms drove the tax collection spike. He added that allowing sugar exports to Afghanistan reduced smuggling and improved the current account balance.
Track-and-trace technologies, automatic counters, and video surveillance have helped the FBR increase revenue. Enforcement has also sealed 10 sugar facilities for legal infractions, costing Rs125 million.
