In an unprecedented development, Pakistan’s sugar exports to Afghanistan have surged by a staggering 4,332% during the first seven months of the current fiscal year.
Dramatic Increase in Export Figures
Between July 2024 and January 2025, Pakistan exported sugar worth $262.7 million to Afghanistan, a monumental rise from the mere $5.9 million recorded during the same period in the previous year. This surge has positioned sugar as the leading export commodity from Pakistan to its neighboring country.
Government Policies Fueling the Surge
The Pakistani government’s decision to permit the export of 750,000 metric tonnes of sugar between June and October 2024 played a pivotal role in this export boom. In October 2024 alone, an additional 500,000 metric tonnes were approved for export, further amplifying the trade volume.
Impact on Domestic Sugar Prices
Concurrently, domestic sugar prices in Pakistan have experienced a significant uptick. Over the past ten weeks, the average price has escalated by Rs21.26 per kilogram, reaching Rs153.11 per kg. In certain regions, prices have soared as high as Rs160 per kg, compared to an average of Rs131.85 per kg a decade ago.
Broader Trade Relations Between Pakistan and Afghanistan
The overall trade dynamics between Pakistan and Afghanistan have also witnessed positive trends. Total exports from Pakistan to Afghanistan increased by 52%, amounting to $753.8 million in the first half of the current fiscal year, up from $495.2 million during the same timeframe in the previous year.
Government Measures to Stabilize Domestic Market
In response to the escalating domestic sugar prices, the Pakistani government has implemented measures to stabilize the market. These include setting the retail price of sugar at Rs145.15 per kilogram and closely monitoring price movements to prevent unwarranted hikes. The government has also cautioned that sugar exports will be halted if domestic prices exceed the established threshold.
The exponential increase in sugar exports to Afghanistan underscores the evolving trade relationship between the two nations. However, it also highlights the challenges Pakistan faces in balancing export growth with domestic market stability. Continuous monitoring and adaptive policies will be essential to ensure that the benefits of increased exports do not come at the expense of local consumers.
