Pakistan, July 12 -- ISLAMABAD - The government's decision to import 500,000 metric tons of sugar, divided between the Trading Corporation of Pakistan (TCP) and the private sector, is expected to increase the import bill by approximately $275-280 million. However, industry experts warn this move is unlikely to bring down soaring local sugar prices, which are expected to remain around Rs195-200 per kilogram. The landed cost of imported sugar is projected to be roughly Rs155 per kilogram.

This import plan follows a series of extensive tax exemptions approved by the Federal Board of Revenue (FBR), including zero customs duty, a 0.25% sales and withholding tax, and a waiver of the 3% minimum VAT. While these measures are intended to reduce i...