TCP Floats International Tender for Sugar Import

KARACHI: Following the federal government’s instructions, the Trading Corporation of Pakistan (TCP) has announced an international tender for the procurement of 300,000 metric tons of white refined sugar.

The government has resolved to import 0.5 million metric tons of sugar to stabilise escalating commodity prices and avert domestic market shortages.

The Federal Board of Revenue (FBR) has already waived customs duties on the import of 0.5 million tons of sugar and reduced the sales tax rate from 18 percent to 0.25 percent, as well as the withholding tax to 0.25 percent for imports by the TCP or the private sector.

After sugar exports in the previous fiscal year, local sugar costs have surged, reaching Rs 180 per kilogram, up from less than Rs 140 per kilogram at the time of export. The government is importing sugar in response to this sharp increase to stabilize the local market.

Consequently, the state-run grain trader, acting on government directives, has released an international tender. It has invited sealed bids from global white refined sugar suppliers/manufacturers, either directly or via their local offices or representatives, who can supply “White Refined Sugar” from worldwide sources. The tender is for 300,000 metric tons (+/-5% at the Seller’s Option) of white refined sugar (bagged cargo) on a CFR Karachi and/or Gwadar basis (in break bulk), including 50,000 metric tons of white refined sugar (bagged cargo) delivered at place unloaded (TCP Pipri Godown) in containers only.

Bids prepared following the tender document instructions must be submitted by 1130 hours on or before July 18, 2025. The bids will be opened at 1200 hours on the same day in the TCP’s Board Room, with bidders or their authorized representatives welcome to attend.

According to the tender, bids must be for a minimum of 25,000 metric tons (+/- 5 percent MOLSO) on CFR Karachi. Bids for less than 25,000 metric tons for CFR (Break Bulk) and/or DPU (Containerized) will not be considered.

Bids must remain valid for Eighty (80) hours from the submission date, and the total quantity of white refined sugar must arrive at the designated ports/destination in Pakistan according to the shipment schedule outlined in the Tender Document.

TCP has clarified that parties who have previously failed to meet their contractual obligations with TCP are ineligible to participate in the bids unless they settle their dues along with penalties or fulfill their outstanding contractual obligations in services and commodities with TCP before the tender opening date.

Furthermore, firms facing blacklisting procedures initiated by TCP are also ineligible to participate in the tender.

The supply/import of white refined sugar will adhere to the Imports and Exports (Control) Act, 1950, the current Trade Policy provisions, PPRA Rules 2004, and related orders/notifications. It must also meet the requirements/specifications set by the Pakistan Standards Quality Control Authority (PSQCA) for imported white refined sugar.

The winning bidder must furnish a Performance Guarantee, ensuring satisfactory contract performance, equivalent to five percent (5%) of the contracted goods’ value (including +5% of MOLSO). This guarantee must be provided within five (05) working days from the contract award, either as a Bank Guarantee in US Dollars from a minimum “A” rated (PACRA/VIS) Bank in Pakistan or as a Banker’s Cheque in PKR (equivalent to US dollars at the exchange rate on or a day preceding the date of opening of the tender.