The Sugar industry employs over 75000 people, including management experts, technologists,

engineers, financial experts, skilled, semiskilled and unskilled workers. It contributes around 4 billion
rupees only under the head of excise duty and other levies to the Government are also paramount
significance. Unfortunately, Pakistanís sugar industry is mostly owned by political personalities and
majority of the sugar mills were setup with the help of DFIs normally trapped with the working capital
crisis. Consequently, some of the mills have already been closed and it is feared that some more sick
units will also close down. A collapse of sugar mill is a loss of national assets, reduction in the sales tax
revenue and an increase in unemployment. Sugarcane is the fourth largest cash crop grown in Pakistan
which contributes to the agriculture economy the crop value of Rs. 48,292 million. Its share in the large-
scale industry is 18% and 1.9% in GDP. Sugar industryís contribution to the Government exchequer in
Federal excise duty is 11.2%. Average yield of sugarcane is 44 tons against the world average of 60 tons
per hectare. Pakistanís sugar mills crushing capacity is 58 million tons of sugarcane capable to produce 5
million tons of refined sugar and 3 mill tons of molasses. The mills still have utilized capacity of 34%.