Pakistan has, for the first time, exported sugar to Afghanistan through official channels instead of illicit routes, Finance Minister Muhammad Aurangzeb said on Tuesday, crediting law enforcement agencies for ensuring a regulated trade at the border.

“… we need every single dollar coming in to balance our current account,” the finance minister said speaking at a press conference along with Federal Information Minister Attaullah Tarar.

Elaborating on the implementation and effectiveness of the strict production monitoring system, the country’s top economic manager termed the development as positive.

“During this sugar season, the country would have 5.7 million tonnes of sugar in addition to the stock available from the previous season,” Aurangzeb said.

He expressed confidence that this would be sufficient to meet the country’s needs through better management.

“On top to these technological measures, FBR (Federal Board of Revenue) personnel have been deployed at sugar mills across the country to ensure accountability and reduce malpractices,” the finance minister said.

He said the presence of the Federal Investigation Agency (FIA) and the Intelligence Bureau (IB) officers, along with other law enforcement agencies, further strengthened the system’s enforcement.

“The result is that sugar is now being sold to genuine distributors, and profiteering and corruption within the supply chain are being significantly minimised,” Aurangzeb said.

Meanwhile, in its bid to stabilise and bring down soaring sugar prices, the federal government has decided to import raw sugar (shakkar), The News reported on Tuesday.

The import of raw sugar, as per a press release issued by the government, would help bring down sugar prices and would also increase future sugar production, as it could be refined and converted into sugar locally.

The development comes as sugar prices in the country have witnessed a significant increase in recent months with the price reaching the nationwide average to Rs150.43 per kilogramme last month.

Commenting on the ongoing reforms in the sugar industry, he noted that as the 2024-2025 sugarcane crushing season began, the FBR had implemented a new, enhanced production monitoring system for sugar mills.

“This system includes five oversight mechanisms, such as track-and-trace stamps, automated counters, and video recording to increase transparency,” he said.

Since the week ending November 28, 2024, sugar prices have increased by Rs18.58 per kg, reflecting a 14.3% surge. A year ago, in February 2024, the average price had stood at Rs144.47 per kg, marking an annual rise of approximately Rs6 per kg.

The continuous price hike coincides with the government’s decision to approve large-scale sugar exports.

Between June and October 2024, authorities had permitted the export of 750,000 metric tonnes, including a final approval of 500,000 metric tonnes in October.

The finance minister also highlighted the positive impact of these reforms on government revenue, noting that the sales tax on sugar in the first two months of 2025 had risen sharply compared to the same period in the previous year, reaching Rs24 billion, up from Rs15 billion in the previous year.

“This 54% increase is a clear indication of the success of the government’s enhanced monitoring systems,” he added.

Thanking the Pakistani diaspora for their contribution to the nation’s economy, the minister said the remittance inflow for February 2025 had reached an impressive $3.1 billion. “We estimate an all-time high remittance inflow of $36 billion by the end of the fiscal year,” he said.

The finance minister also shared the results of several independent surveys conducted in the past quarter, including those by Gallup, ICC, Overseas Shapers, Ipsos, PricewaterhouseCoopers and a recent one by the State Bank of Pakistan, all of which showed a noticeable uptick in business and consumer confidence.

“This confidence is reflected in increased business activity, and it is promising to see these positive trends taking root across various sectors,” he noted.

Despite daily fluctuations in the stock market index, Aurangzeb expressed optimism about the market’s overall direction.

Notably, he pointed out that 52,000 new investors had entered the market in recent months, signalling a growing interest in Pakistan’s financial sector.

Furthermore, the finance minister highlighted a major milestone in the capital markets, with seven initial public offerings (IPOs) taking place on the stock exchange in the past year.

“This is the highest number of IPOs in recent years, significantly surpassing the average of four IPOs annually over the past decade,” the finance minister said.

“These are very encouraging signs of progress, both in terms of economic recovery and in fostering a more vibrant, investor-friendly market environment,” he said, adding that such developments suggested long-term improvements to come.