Opposition demands CJP’s intervention in Rs300bn sugar industry scandal

ISLAMABAD: The Tehreek Tahaffuz-e-Ain has formally requested Chief Justice of Pakistan (CJP) Yahya Afridi to take suo motu notice of a significant issue involving Pakistan’s sugar mills, which allegedly gained Rs300 billion due to recent price hikes.

The opposition alliance has raised concerns about the lack of regulation and oversight, claiming that the government has failed to address this manipulation by the sugar industry.

In a letter addressed to the CJP, Vice Chairman Mustafa Nawaz Khokhar urged the formation of a commission under Article 184(3) of the Constitution to investigate the sugar sector’s activities, particularly focusing on suspected policy manipulation and regulatory failures.

Khokhar emphasized that swift judicial action is needed to protect the public from the continued exploitation of the industry and to restore trust in the governance system.

The letter also pointed out that, during a Public Accounts Committee meeting on July 29, it was revealed that sugar mills profited by Rs300 billion following the recent spike in sugar prices. This, according to the opposition, underscores the ongoing unchecked actions of the sugar mafia, which allegedly has strong ties with the ruling elite.

Meanwhile, the Competition Commission of Pakistan (CCP) has postponed the hearing of the ongoing sugar cartel case. Over 70 sugar mills requested the delay, citing the unavailability of legal representation due to the Supreme Court’s summer recess. The CCP has rescheduled the hearing to take place between September 22 and 25.

Despite the adjournments, the CCP assured that the case would be heard on a daily basis until a final decision is reached. More than 50 mills have also filed appeals in the Supreme Court challenging the tribunal’s directive for the CCP to rehear the case.

This legal back-and-forth follows the imposition of a Rs44 billion fine on the Pakistan Sugar Mills Association (PSMA) and its members in 2021 for price-fixing and anti-competitive practices.

The Competition Appellate Tribunal had ordered a fresh hearing of the case after the PSMA’s appeal, instructing that a verdict be issued within 90 days of the hearing’s commencement.

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