New Delhi, May 24 : Pakistanâ??s rising food import bill is emerging as a major threat to the countryâ??s fiscal stability and economic resilience, exposing deep structural weaknesses in its agricultural and governance systems, a report has said.

Latest trade data for the first 10 months of FY2025-26 showed that Pakistanâ??s food imports surged by 13.81 per cent to $7.848 billion, while exports of raw food products declined by more than 32 percent to $4.19 billion, according to the Business recorder report.

The widening gap between food imports and exports is increasing pressure on Pakistanâ??s already fragile external account at a time when the country remains dependent on IMF oversight, external financing support, and repeated fiscal adjustments.

Economists warn that rising food imports are rapidly draining valuable foreign exchange reserves and adding to inflationary and exchange-rate pressures, the report said.

Among the biggest concerns is the sugar sector, which has once again exposed serious policy contradictions.

Pakistan initially allowed sugar exports under claims of surplus production and excess inventories.

However, within months, the country was forced to import sugar at higher international prices after domestic shortages triggered a sharp rise in retail prices, the report stated.

According to trade figures, Pakistan imported more than 309,000 tonnes of sugar during July-April FY26, compared to negligible imports during the same period last year.

The sugar import bill climbed to nearly $175 million after shortages emerged following exports and supply disruptions, as per the report.

Analysts said the cycle has become a recurring feature of Pakistanâ??s economic management.

At the start of every crushing season, sugar mill owners and industry representatives project bumper output, leading the government to approve exports.

Once exports reduce domestic stocks, prices begin rising, accusations of hoarding surface, and authorities eventually resort to emergency imports to stabilise the market.

The situation has raised concerns over weak governance, poor stock monitoring, and the influence of politically connected industry groups on policymaking.

Critics argue that private players benefit from export profits when international prices are favourable, while the government and public bear the burden of costly imports later, the report mentioned.

/IANS