The International Monetary Fund (IMF) has expressed reservations over Pakistan’s decision to offer tax exemptions and subsidies on imported sugar, warning that such measures could jeopardize the ongoing $7 billion loan program.
According to official sources, the IMF has opposed the government’s plan to provide a subsidy of Rs55 per kilogram on imported sugar, which is expected to arrive in Pakistan at a cost of Rs249 per kg.
The international lender has also rejected the Pakistan government’s justification that the import falls under “food emergency” measures.
A key concern raised by the IMF is that a significant portion of the imported sugar is likely to be consumed by industrial users rather than domestic households. This, the IMF argues, undermines the rationale of public interest and could be viewed as a violation of fiscal discipline.
