The government of Pakistan has decided during a meeting for the Economic Coordination Committee (ECC) to allow exporting sugar to Iran in return to electricity imports.
Finance Minister Ishaq Dar chaired the meeting of EC and approved the export of sugar to Iran against the import of electricity to overcome the energy crisis. The ECC approved export of 30,000 tons of wheat as well to Iran as part of a barter trade agreement with Iran.
Iran has been facing economic problems due to the sanctions imposed on the import of oil by the United States. Pakistan has been facing immense energy crisis and thus the deal with Iran is part of Islamabad's policy to tackle the problem.
Sugar mills in Pakistan have asked the government to allow the export of an additional 500,000 tons as a bumper sugarcane harvest this year led to an exportable surplus of sugar. The former chairman of the Pakistan Sugar Mills Association (PSMA), Iskander Khan asked that the government to immediately allow export of another 500,000 tons of sugar as the country's stock was higher than the local demand.