The sugar industry in Pakistan is a complex web of powerful political families, business conglomerates, and influential individuals. This nexus has led to frequent scandals, accusations of cartelization, and significant political sway.
Key Owners and Influential Groups:
* Political Families: A significant number of sugar mills in Pakistan are owned directly or indirectly by prominent political families or their close relatives. This blurs the lines between business and politics, giving these families immense leverage.
* Sharif Group: The Sharif family, a prominent political dynasty (associated with Nawaz Sharif and Shehbaz Sharif), owns Ramzan Sugar Mills and has substantial interests in the sugar sector. Their business expanded rapidly during their time in government.
* Omni Group: Allegedly linked to former President Asif Ali Zardari, the Omni Group operates a significant number of sugar mills, particularly in Sindh province.
* Jahangir Khan Tareen (JKT/JDW Group): A former close confidante of Prime Minister Imran Khan, Jahangir Khan Tareen is a major player in the sugar business, with a substantial market share through his mills (e.g., JDW Sugar Mills).
* Other politically connected families, including those of former ministers and members of various political parties, also own sugar mills across Punjab, Sindh, and Khyber Pakhtunkhwa.
* Major Business Conglomerates: Beyond political families, other large business groups also have substantial stakes in the sugar industry.
* Fatima Group: A prominent conglomerate that ventured into sugar manufacturing in 1989 with Fatima Sugar Mills Limited, now a major player.
* Jauharabad Sugar Mills Limited, Almoiz Industries Limited, Al-Abbas Sugar Mills Limited, Hunza Sugar Mills (Pvt) Limited, Premier Sugar Mills & Distillery Company Limited, Dewan Sugar Mills Limited, R.Y. Khan Sugar Mills Limited, Faran Sugar Mills Limited, Shakarganj Limited, Adam Sugar Mills Limited: These are some of the other significant sugar mill owners mentioned in various reports.
Influence and Scandals:
The influence of sugar mill owners in Pakistan is deeply entrenched and multi-faceted:
* Political Lobbying and Policy Manipulation: Sugar mill owners, often organized under the Pakistan Sugar Mills Association (PSMA), are known for their strong lobbying efforts. They have historically influenced government policies related to sugarcane pricing, sugar exports, import tariffs, and subsidies. This influence allows them to create favorable market conditions for their businesses.
* Cartelization and Price Fixing: The industry is frequently accused of operating as a cartel, engaging in collusive behavior to manipulate sugar prices, create artificial shortages, and control market supply. Investigations, such as the Sugar Forensic Commission report in 2020, have revealed how mill owners allegedly cheated farmers, evaded taxes, and benefited from unjustified subsidies.
* Subsidies and Financial Gains: Sugar mills have consistently benefited from large government subsidies, often disguised as industry support. These subsidies, along with artificial price inflation, have led to significant profits for mill owners, often at the expense of consumers and farmers.
* Exploitation of Farmers: Mill owners are frequently accused of exploiting sugarcane farmers by delaying payments, offering lower-than-official prices, and manipulating weighing processes. The highly regulated nature of the industry, where mills often have monopsony power in their designated cane areas, exacerbates this issue.
* Tax Evasion: Reports have also highlighted widespread tax evasion by sugar mills, further contributing to losses for the national exchequer.
* “Sugar Mafia” Allegations: The term “sugar mafia” is often used in Pakistan to describe the powerful and politically connected individuals and groups who control the sugar industry and allegedly manipulate it for their benefit.
Recent Developments and Crackdowns:
In recent years, particularly during the Imran Khan government, there have been attempts to crack down on the “sugar mafia.” The 2020 Sugar Forensic Commission report implicated several powerful individuals, including close allies of the then-Prime Minister. More recently, in early 2025, Prime Minister Shehbaz Sharif granted full authority to various agencies to take action against those involved in illicit profits and market manipulation within the sugar industry, with officials stationed at mills to monitor activities.
Despite these efforts, the deeply ingrained nexus between sugar mill owners and the political elite makes significant and lasting reforms challenging. The industry continues to be a hotbed of controversy, with its powerful owners maintaining considerable sway over economic and political affairs in Pakistan.