• FBR officials located on Sugar Mill’s premises.
• Sugar prices fall from RS185 to RS165 after action.
• PM is closely monitored by the sugar sector.
  

Islamabad: Prime Minister Shehbaz Sharif on Sunday approved the Federal Board of Revenue (FBR), Federal Investigation Agency (FIA) and Intelligence Agency (IB) to take strict actions against the sugar sector’s players accused of having collected RS140 billion in unjustified profits within a short period of time, The news reported.

As part of a tumbled strategy, the government has deployed FBR and intelligence officials to Sugar Mill’s premises to monitor operations and limit illegal activities. Authorities have also collected critical financial data to postpone many years of irregularities and malpractices in the industry.

During the three months of the crushing season, the government was able to identify the sugar factories involved in malpractices in addition to identifying hamsters, members of SATTA (betting) sugar mafia and various mill owners involved in manipulation of sugar production, stocks and its price.

Under a well -developed strategy, as a first step based on the available data on purchases, lifting of sugar, balance available at a particular dealer with the mills and payments made either through their personally maintained bank accounts or false accounts maintained in the value of the services, the government has a clear visibility of false buyers and amounts transferred to the false and Benami (not named) accounts of Sugar Mills.

This has sufficiently enabled the government to initiate criminal proceedings in accordance with the money laundering legislation, Anti Benami Act, Tax-Vasion and Anti-Hoarding Laws is a recognizable offense.

The nationwide undeveloped operations against the politically connected most powerful lobbies have sent a strong message to the sugar washing and “Satta Mafia,” which the government without the mood of spending anyone regardless of political affiliation and powerful status. Shehbaz even monitors the action against the sugar sector.

In the second phase of the strategy, if market forces remain do not respond, based on the available undeniable evidence, the government is considering a crash on the mills directly involved in malpractices and relief of wrongdoing by hiding the stocks in their mills and receiving payments through fake and Benami bank accounts.

As a result of the first phase of the strategy, an immediate downward trend has been witnessed in sugar prices. It is relevant to mention that the sugar price on March 13 ie. Before the crash in Lahore and adjacent areas was around RS175-185/kg; However, the price fell to RS165/kg before March 16.

Previously, an inflationary trend in sugar prices were witnessed. It may be added that at the start of the crushing season, November 22, 2025, the national average sugar price RS137/kg, which rose to RS173/kg on March 14.

In major city centers like Lahore were Karachi, Faisalabad, Peshawar and Quetta Price on sugar reached/around RS180-185.

Satta Mafia speculated that the sugar price will rise to the RS200 in the next few months and will reach the RS220 at the end of the season in November 2025.

Due to the said inflation tendency, investors and dealers invested strongly in sugar stocks to earn profits in a short time.

It is learned that sugar-representative bodies are currently trying to negotiate ex-factory prices with the government, considering the average price of sugar cane during the crushing season.

“It is estimated that the mills devised a nexus with wholesalers, dealers and distributors and manipulated the prices of the domestic market. The estimated prices for sugar at the ex-Mill price and then with the introduction of VAT have been prepared for RS140 to RS145 per year. Kg. By incorporating other costs, the maximum price of sugar should not be more than RS155-160 per day. Kg, ”the top official sources are confirmed while talking to The news On Sunday.

As an important development, the relevant authorities have proposed a paradigm shift in the legislative mechanism to the government to introduce and change the laws to confiscate the seized sugar of actionists instead of selling it at the official award and returning them the money.

Official sources said the prime minister had given the review to the crash on the sugar mafia, which would continue without any interventions.

The FIA, IB and FBR have performed operations and found evidence and evidence from Hoards, actionists, wholesalers and distributors leading to alleged manipulation of retaining domestic prices.