Sugar Sector Reforms Stalled as Provinces Delay Legislation Ahead of IMF Deadline
Islamabad: The federal government has yet to implement sugar sector reforms despite the approaching March 2026 deadline set by the International Monetary Fund (IMF), according to official sources.
Sources said that, despite repeated requests from the Ministry of Industries and Production, provincial governments have not completed the necessary legislation to initiate deregulation of the sugar sector.
Under the proposed deregulation framework, farmers would no longer be required to cultivate sugarcane and could freely decide whether to grow the crop. They would also be allowed to sell sugarcane to any mill nationwide, without zoning or territorial restrictions.
Punjab, Sindh, and Khyber Pakhtunkhwa have acknowledged receipt of the federal government’s correspondence and referred the matter to their respective departments, keeping the centre informed, sources added. To ensure crop quality, the government plans to issue a negative list identifying sugarcane varieties considered harmful. Deregulation would also remove restrictions on establishing new sugar mills across the country.
Officials noted that the lack of provincial legislation is emerging as a major bottleneck, raising concerns about Pakistan’s ability to meet IMF commitments and potentially complicating the broader reform agenda under the ongoing programme.
