The Sindh High Court (SHC) on Thursday dismissed petitions filed by 16 sugar mills challenging the federal government’s decision to withhold inland freight subsidy.
The court gave a ruling that the approved grant had effectively lapsed with time and could not be revived through judicial intervention, 24NewsHD TV channel reported.
In its order, the court observed that a subsidy constituted a financial benefit rather than a fundamental right, and therefore, a writ under Article 199 of the Constitution could not be issued to compel the government to release funds.
The petitions were filed after the subsidy was stopped despite approval by the Economic Coordination Committee.
Counsel for the petitioners argued that the federal government had publicly announced the subsidy to support sugar exports but suspended its release owing to an NAB inquiry involving the mills.
Representing the Trade Development Authority of Pakistan, Barrister Asad Ahmed informed the court that the payment had been halted on instructions from the Ministry of Commerce and could only proceed once funds and formal approval were secured.
On 29 October, the Federal Board of Revenue (FBR) made real-time, video-analytics-based surveillance mandatory for all sugar mills across Pakistan in an effort to enhance transparency and curb tax evasion.
An official notification stated that sugar mills must install advanced GPU-based video systems before the start of the next crushing season and would not be permitted to operate without the approved monitoring mechanism in place.
The new system, according to the FBR, will allow continuous analysis of production activity through a central electronic network, enabling authorities to detect discrepancies and improve tax compliance across the industry.