The twin cities of Rawalpindi and Islamabad are grappling with a worsening sugar shortage, with prices soaring to record highs. In retail markets, sugar is being sold for Rs190 to Rs200 per kilogram, while wholesale prices for a 50kg bag have surged to Rs9,300. The situation has left store shelves empty, and both retailers and wholesalers are struggling to maintain stock.
This crisis isn’t limited to the capital region — similar shortages have been reported in Attock, Chakwal, and Talagang, deepening public frustration.
According to industry sources, the root causes include depleted inventories and disruptions in the supply chain. Adding to the controversy is the fact that Pakistan exported around 766,000 tonnes of sugar earlier this year, earning approximately Rs114 billion, only to now face a domestic crisis that’s driven prices through the roof.
To counter this, the government plans to import between 500,000 and 750,000 tonnes of sugar through the Trading Corporation of Pakistan (TCP), at an estimated cost of $280 million in foreign exchange. The TCP is expected to begin importing in August, following the tender deadline on July 18.
In the meantime, local authorities have launched crackdowns on hoarding and profiteering, imposing fines on retailers selling sugar above the government-fixed price of Rs165 per kilogram. However, the Karyana Merchants Association in Rawalpindi has halted sugar sales altogether, citing unsustainable business conditions. The group has demanded a minimum Rs10/kg profit margin for retailers, rejecting the current price controls, which they say don’t cover transport and procurement costs.
This episode reflects a recurring crisis in Pakistan’s sugar sector, where agricultural capacity is undercut by short-sighted policies and market mismanagement. The government’s decision to export a surplus, followed by emergency imports, has drawn criticism for weakening both consumer affordability and foreign exchange reserves.
As prices spiral and households struggle, residents of Rawalpindi, Islamabad, and surrounding areas are left bracing for a prolonged squeeze — with no quick fix in sight.
Published in SouthAsianDesk, July 16th, 2025
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