The sugar industry in Pakistan has long been a textbook case of market distortion. For decades, it has operated under a complex web of government intervention, protectionist policies, and political influence, shielding itself from the fundamental forces of supply and demand.
The industry, dominated by a small number of politically connected families, has enjoyed subsidies, guaranteed minimum support prices for sugarcane, and protection from competition, both domestic and international. This regime of artificial incentives has fostered inefficiencies, restricted competition, and distorted price signals, ultimately burdening consumers and the broader economy.
However, after 75 years of coddling, the government has finally taken a decisive step towards liberalizing the industry, marking a rare moment where policy reform has aligned with economic rationality.
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