Pakistan is ranked 7th both in terms of production and export of sugar and is ranked 8th in consumption. Since 2010-11, Pakistan consistently has a surplus in sugar production and has earned $2.3 billion through exports. However, the recent sugar crisis has brought to the focus the important issue of export subsidy for sugar. Prior to Government permission of sugar export in December 2018, the retail prices of sugar were Rs.55 but then continuously start to increase with the increase of export. The export subsidy was granted at the rate of Rs.5.35 per kg amounting to Rs.2.47 billon which boost up the export and created deficit between demand and supply.