Sugar crisis grapples Pakistan

@the_news_21

The sugar crisis continues to grapple Pakistan even after the crushing season has come to an end. The Federal Investigation Agency (FIA) has detected a scam worth of Rs 110 billion by the sugar mafia in last one year. On the other hand, Lahore, the second most important city after Capital Islamabad is facing its worst sugar shortage.

The FIA has registered an FIR against estranged PTI leader Jahangir Tareen’s JDW group and Gourmet Bakers and Sweets Private Ltd, Lahore, under Anti-Money Laundering Act 2010. According to the FIR, they artificially hiked sugar prices amidst hoax of impending sugar shortage. They also created artificial demand-supply gap.

The investigation has revealed that the sugar mafia had fraudulently ramped up sugar prices from Rs 70 kg to Rs 90 per kg stretching it further to Rs 110 per kg. The agency suspects that owners and officials of sugar mills have a tactic support to the sugar mafia.

The ramifications of the scam are visible in Lahore, where the sugar price has touched to Rs 100 per kg. The Punjab government feels that the crisis is likely to enhance if corrective steps are not taken. It has empowered the cane commissioner and district administration to regulate the sugar business.

Lahore’s daily sugar consumption is 1,200 tonnes. However, as the supplies have been hit from the sugar mills for the last one week, the demand and supply gap of the sweetener has widened and the prices may hit new peaks.

PM asks advisor to step down in oil crisis

As if sugar scam was not the only embarrassing thing for Prime Minister Imran Khan the petrol crises also brought a bad name to the government. Khan had to direct his special assistant on petroleum Nadeem Babar to step down as the government has decided to carry out the forensic audit of the petrol crises that had rocked the country in June 2020.

Asad Umar, minister for Planning, Development and Special Initiatives, said the action has been initiated after the recommendations submitted by the ministerial committee formed to probe the fuel crisis. The recommendations of the committee were forwarded to Khan.

In a damage control exercise the government has said that both the Special Advisor to the PM and the Petroleum Secretary had not been found guilty of any involvement in the crises. It claimed that the decision has been taken to ensure transparency in the probe.

The Federal Investigation Agency (FIA) has been asked to do a forensic audit and submit its report within 90 days. The agency has also been asked to investigate whether the legal requirement for a minimum inventory was fulfilled by the oil companies.

The discrepancies in sale will also be investigated and so as were the sales figures reported actual numbers or they are just reported on papers or actual.

“These are all those things which are noted in the report are prima facie, it was determined that these did occur. So I am just saying that the evidence has to be given such a shape that it is prosecutable in court,” explained Umar.

He also elaborated on a key allegation in the report regarding delayed berthing of an oil ship so that when new rates are notified, the product can be sold at a higher rate. Umar said a forensic investigation and pinpointing in this also needs to be done to ascertain who was responsible. He said illegal sales will also be covered in the forensic audit.

Outsourcing of railways

Pakistan Railways is all set to outsource the commercial management of its eight passenger trains under public private partnership (PPP) to transform the department into a profitable entity. The passenger trains included Sir Syed Express, Hazara Express, Shalimar Express, Mianwali Express, Narowal Passenger Train, Mehran Express, Moenjaodaro Express and Badr Express.

The Pakistan Railways had already outsourced the commercial management of six passenger trains including Lasani Express, Faiz Ahmed Faiz, Attock Passenger Train, Jand Passenger Train, Fareed Express and Mehr Express. Pakistan Railways was earning Rs 1539 million from the already outsourced trains while the bids amounting to Rs. 1718 million were received against them.