Haroon Akhtar Rejects CCP’s Rs40 Billion Fine on Sugar Mills
Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan has strongly criticized the Competition Commission of Pakistan (CCP) for imposing a Rs40 billion fine on sugar mills, calling the decision “politically motivated and 100% wrong.”
Speaking to journalists after attending the Auto Parts Summit 2025 in Lahore, Akhtar ruled out allegations of cartelization in the sugar sector. Instead, he attributed the recent sugar price hike to a 20% decline in sugarcane output, which reduced production by around 1.4 million tons.
“Mills are dispatching sugar at around Rs167 per kg, but the real problem lies in lower sugarcane supply, not collusion,” Akhtar said.
Deregulation of Sugar Prices Proposed
Akhtar urged the government to deregister ex-mill sugar prices, keeping only strategic reserves to stabilize supply. He argued that, like rice and other crops, sugar prices should be left to market forces.
The PM aide also dismissed claims that sugar exports were responsible for the price hike. According to him, Pakistan had a two-year surplus of 1.5 million tons, out of which 0.7 million tons were exported and 0.5 million tons kept as reserves.
IMF Pushes for Greater Autonomy of Pakistan’s Central Bank
He also criticized the CCP’s voting process, alleging that the former chairperson cast a double vote to finalize the fine against sugar millers.
Utility Stores, Steel Mills, and Industrial Reforms
Akhtar also addressed other economic sectors:
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Utility Stores Corporation (USC): He promised the release of overdue salaries and announced a Voluntary Separation Scheme (VSS) for all categories of employees, including contract workers.
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Pakistan Steel Mills: The government is seeking to revive the entity through public-private partnership, with a feasibility study underway.
Focus on Auto Sector and New Energy Vehicle Policy
As chief guest at the Auto Parts Summit 2025, Akhtar reiterated the government’s commitment to the New Energy Vehicle (NEV) Policy 2025–30.
Key initiatives include:
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A new vehicle certification law requiring safety tests for both locally produced and imported vehicles.
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Enforcement of UN’s 1958 convention standards—Pakistan has met 17 out of 169 standards so far, with plans to expand compliance.
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Development of an updated auto policy in 2026 to align with global standards.
Akhtar emphasized that seven major carmakers and over 1,200 auto parts manufacturers are operating in Pakistan, contributing 3% to GDP and supporting 2.5 million jobs.
Call for Export-Led Growth
Akhtar encouraged local manufacturers to invest in R&D and advanced technology to compete globally. He said the government was lowering interest rates and energy prices while steering policies toward export-led growth.
Citing talks with Japanese and Chinese officials, he highlighted concerns over tariffs and stressed that Pakistan must position itself not just as a consumer market but also as a regional export hub.
“Build vehicles of international quality here and export from Pakistan,” he urged.
Conclusion
Haroon Akhtar’s remarks highlight the government’s push for deregulation in the sugar industry, reforms in steel and utility sectors, and a forward-looking auto policy. While he has dismissed the Rs40 billion fine on sugar mills, his emphasis on deregulation and industrial reforms suggests a broader vision to shift Pakistan’s economy toward transparency, competitiveness, and export-oriented growth.
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