Islamabad: The Public Accounts Committee (PAC) ordered the Federal Board of Revenue (FBR) to provide the names of the owners of mills who benefited from export subsidies and tax exemptions.
During the committee session, chaired by Junaid Akbar Khan, the Ministry of Industries and Production was toasted on the increase in sugar prices and the justification of import and export decisions of sugar.
The committee member, Riaz Fatyana, allegedly alleged that the nation had been defrauded by RS287 billion under the cover of sugar prices and that those who stressed the issue, such as the Punjab cane commissioner, Zaman Wattoo, were sidelined.
He questioned the inconsistence in government complaints, citing sugar as excess for a moment and in the next.
The secretary of the industries explained that the sugar industry is regulated by provincial governments, with federal and provincial representatives who are part of the Sugar Advisory Board, which also includes stakeholders in the sugar industry. The Council monitors current actions and national requirements.
The committee was informed that the overwhelming season takes place from November 15 to March 15 and that provincial governments provide estimates of actions and production.
Officials added that this year, the country had an excess of more than 1.3 million metric tonnes of sugar, of which 500,000 metric tonnes were reserved for the following year.
The Federal Cabinet and the Economic Coordination Committee (ECC) had granted the export of 790,000 tonnes in three phases, which resulted in more than $ 400 million in exchange benefits.
However, the members of the committee criticized this policy, stressing that when the sugar was exported, the local market rate was RS143 per kilo, which has now passed to Rs173 per kilo.
A special committee under Dar-Prime Minister ISHAQ DAR has since been trained to investigate the price increase.
The PAC session also examined a SRO issued by FBR which facilitated exemptions from importing sugar and tax exemptions. Mna Sanaullah Mastikhel has questioned the interests that were served by SRO, noting that even an increase in RS1 of the price of sugar generates 44 billion rupees.
He criticized the perpetual profit cycle, urging that the owners of mills put their facilities in the state if they cannot manage them fairly.
The committee member, Moeen Aamir Pirzada, went further, accusing the sugar mafia of being anchored in successive governments. He also demanded the list of sweets who have obtained export licenses. Khawaja Shiraz specifically asked who were the beneficiaries.
In response, FBR officials said they would provide names on official education, which prompted the president of the CAP, Junaid Akbar, to retort that such an order had already been issued but has been ignored.
The Committee concluded the session by officially ordering the FBR to submit the names of the owners of sugar and the administrators who took advantage of the export and pricing decisions.
