Tajikistan sweet-talks Pakistan into cheaper sugar deal

  • -

Tajikistan sweet-talks Pakistan into cheaper sugar deal

Category : News

Monday, August 13, 2012 – Tajikistan has secured a deal to buy sugar from Pakistan at a discounted price, Pakistani sources said on Monday.

The Central Asian state will purchase 30,000 tons of sugar from Pakistan at a rate below the international market rate, the PakTribune news agency reported Monday.

Tajikistan will pay $597.90 per ton, which is $20 less than the market rate.

The deal was struck in a government-to-government deal, initiated by Tajikistan. The sugar will be provided from the Trading Corporation of Pakistan (TCP) reserves.

Pakistan had a ban of sugar exports in effect since 2009, but the Economic Coordination Committee (ECC) allowed the lifting of the ban in this instance.

Tajik Prime Minister Oqil Oqilov set the ball rolling in a letter sent to his Pakistani counterpart Raja Pervez Ashraf at an undisclosed date, while the Pakistani cabinet made the decision to sell the sugar to their near-neighbor on July 16. A decision was then taken on August 7.

Tajik-Pakistani relations have been heating up, with Pakistani business leaders calling on entrepreneurs to consider Tajikistan as a serious market for exports. Tajikistan is set to become a major electricity exporter to Pakistan once the CASA-1000 plan is implemented.