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Legitimised corruptionThe government of Pakistan’s decision to fully deregulate the sugar sector is a landmark step toward market-driven reforms that will reduce state intervention and promote efficiency across the agricultural value chain, experts said.
While talking to Business Recorder Arif Habib Commodities CEO Ahsan Mehanti said the government has taken a major decision to fully deregulate the sugar sector under commitments made with the International Monetary Fund (IMF), aiming to end subsidies and strengthen fiscal discipline.
Under the new mechanism, the government will no longer set minimum prices for sugarcane or intervene in export decisions. Instead, market forces will determine prices and trade flows, marking a significant shift toward a free-market framework, Mehanti explained.
Meanwhile, Pakistan Business Forum (PBF) Chief Organiser Ahmad Jawad said deregulation, if implemented in its true spirit, has the potential to enhance efficiency, promote competition, and improve long-term sustainability of the sector.
Under the new policy, farmers will have complete freedom to cultivate sugarcane, without any restrictions on the varieties they grow or the zones in which they plant and the government will no longer regulate sugarcane prices.
Jawad said the decision to allow farmers to sell their crop to any mill of their choice is a positive and long-overdue reform, as it empowers farmers and fosters healthy competition among sugar mills.
In a truly deregulated environment, sugar mills would be forced to offer competitive prices and improved payment terms to secure sugarcane, helping to address long-standing issues such as delayed payments and the weak bargaining position of farmers, Jawad added.
“Fair market prices for sugarcane should be set through competition among mills rather than by administrative pricing mechanisms.”
“At the same time, the government must ensure strict oversight to curb anti-competitive practices, market manipulation, or collusion that could harm farmers and consumers. Deregulation should not create a regulatory vacuum, but instead be backed by robust enforcement of competition laws and transparent market monitoring”, he said.
Article is long so here is AI summary.
The article "Chasing a Green Illusion," published on January 10, 2026, details the unraveling of the Green Pakistan Initiative (GPI), an ambitious state project intended to transform the Cholistan desert into corporate farmland to ensure national food security.
Here is a summary of the key findings:
1. Operational Failure and Investor Withdrawal
2. The Water Controversy
- Exodus of Companies: Major investors are withdrawing or scaling back. Unity Food group is reportedly leaving, while other entities like Airlink Communications, Beaconhouse, and SinoPak Guangdong are scaling down operations or laying off staff.
- Harsh Realities: Despite promises of abundant resources, companies face a lack of basic infrastructure (roads, electricity) and an extremely hostile climate. Sandstorms have repeatedly destroyed cash crops like cotton.
- Water Crisis: The fundamental flaw is the lack of viable water. Groundwater in Cholistan is highly saline (high TDS levels), making it unsuitable for major crops like wheat. Consequently, many farms have been forced to grow only Rhodes grass (cattle fodder) for export to the UAE, rather than food for Pakistan.
3. Social Displacement and Resistance
- Unviable Plans: The government's plan to dig a canal from the Sutlej River is mathematically and politically fraught. Experts argue the canal cannot provide enough water for the allocated land.
- Political Tension: Diverting water from the Sutlej is controversial because the river's rights were assigned to India under the Indus Water Treaty, and within Pakistan, the province of Sindh opposes further diversions by Punjab.
- Broken Promises: Alternative solutions proposed by consultants, such as riverbed filtration systems, have not been implemented, leaving investors with dry or saline land.
ConclusionThe article characterizes the project as a failure that has not only missed its agricultural targets—producing fodder instead of food—but has also sparked significant social unrest by displacing vulnerable local populations.
- Evictions: To make way for corporate farming, the state is evicting tenant farmers who have tilled state lands for generations (some since 1947). This is occurring in areas like Rakh Ghulaman, Ehsanpur, and Muhammad Nagar.
- Farmer Resistance: Affected farmers have organized legal defenses and protests under the slogan malki ya moat ("ownership or death"), successfully obtaining temporary stay orders from the courts against their eviction.

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