ISLAMABAD: The National Assembly Standing Committee on Finance questioned the government’s sugar import tax cuts, sought updates on IMF talks, and debated the Corporate Social Responsibility (CSR) Bill 2025 during a heated session chaired by Syed Naveed Qamar.
Government’s Sugar Pricing Policy Under Fire
The National Assembly Standing Committee on Finance and Revenue on Wednesday strongly questioned the federal government’s decision to reduce duties on sugar imports, despite no reported shortage of the commodity in the country.
Committee Chair Syed Naveed Qamar said the government’s ongoing involvement in the sugar market contradicted its policy of deregulation, pointing out that wheat pricing had already been handed over to market forces.
“If there is no shortage, why are we interfering in sugar pricing? Let the private sector handle it,” Qamar remarked during the session.
Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial responded that the tax exemptions—reducing 18% sales tax and 20% customs duty—were issued based on a decision by the federal cabinet to ease sugar prices for consumers.
IMF Position Still Unclear on Sugar Duty Relief
MNA Javed Hanif questioned whether these exemptions were in line with Pakistan’s commitments to the International Monetary Fund (IMF).
Finance Secretary Imdad Ullah Bosal confirmed that discussions with the IMF were still ongoing and that the government would eventually have to comply with the Fund’s policy conditions.
Business Community Protests and Budget Review
Addressing the ongoing protests by the business community against certain budgetary measures, Minister of State for Finance Bilal Azhar Kayani told the committee that talks were held on Tuesday. A separate committee has now been formed to resolve the issues within a month.
CSR Bill 2025 Faces Pushback from SECP, Finance Ministry
The committee also reviewed the proposed Corporate Social Responsibility (CSR) Bill 2025, which mandates companies to allocate 1% of their annual profit for social welfare.
While MNA Nafisa Shah argued that companies were already contributing generously and supported the mandatory CSR allocation, both the Securities and Exchange Commission of Pakistan (SECP) and the Finance Ministry opposed the move. They warned that extending CSR obligations beyond the oil and gas sector would increase operational costs for businesses.
Despite the opposition, the committee adopted the subcommittee’s report on the bill but deferred further discussion. The government was granted one month to hold wider stakeholder consultations.
Sugar Price to Be Capped at Rs175/kg
Separately, the Ministry of National Food Security and Research announced that the retail price of sugar will be capped at Rs173–175 per kilogram, with an ex-mill price of Rs165. A formal notification is expected after federal cabinet approval, and provincial governments will be responsible for ensuring compliance.
Other Developments
- The committee deferred discussion on the Electric Vehicle (EV) policy due to the absence of the Industries and Production Secretary.
- The Parliamentary Budget Office Bill 2025 was sent to a subcommittee chaired by Nafisa Shah, with a report expected in 30 days.
The session reflected growing dissatisfaction among lawmakers over inconsistent economic policies, especially those shaped under IMF influence. Members called for more transparency, better stakeholder engagement, and a balanced approach to taxation and social responsibility.
