Pakistan\’s sugar industry has experienced a revolution in the past two decades. Prices of refined sugar have dropped drastically, while wages have outpaced sugar prices, resulting in higher affordability of consumer goods. This has been made possible thanks to policy decisions driven by political incentives. Despite the industry\’s faults, it has achieved efficiency and productivity gains that have enabled a revolution in the downstream industry. However, with the erosion in purchasing power of Pakistanis over the last five years, and higher taxes imposed, demand for consumer goods using added sugar may suffer. The industry should explore the export market for continued growth, while the protections are still in place.
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