Pakistan wants to provide technical and financial support to revive Bangladesh’s state-run sugar mills, which have long been running at a loss.
At the first virtual meeting of a bilateral joint working group held recently, Pakistan formally offered technical expertise and overall cooperation to help Bangladesh’s state-run sugar mills overcome outdated machinery, declining sugar recovery rates and other crises, according to sources. The meeting, chaired by Industries Ministry Additional Secretary Benzir Riyati, was attended by senior delegations from both Bangladesh and Pakistan.
A senior Industries Ministry official said the two countries have formally launched a joint initiative to review the overall condition of Bangladesh’s struggling state-run sugar mills, with the aim of urgent repairs and modernisation.
Under the proposed bilateral cooperation, Pakistan’s state-owned Heavy Mechanical Complex (HMC), Taxila, will conduct technical audits of selected Bangladeshi sugar mills. The organisation will also prepare specific “Balancing, Modernisation and Rehabilitation” (BMR) plans for the factories.
HMC previously worked on setting up Bangladesh’s Natore and Pabna sugar mills. Following the audits, specific rehabilitation proposals will be prepared for the mills.
Both sides have agreed to convert the country’s conventional sugar mills into facilities producing diversified products, aimed at diversifying revenue sources and improving the mills’ financial strength and sustainability. Under the proposed plan, modernised factories would be able to generate electricity, produce bio-ethanol from molasses, and manufacture quality organic fertiliser using press mud.
As a next step in the cooperation, a special Pakistani technical delegation will visit various sugar mills in Bangladesh for on-site assessment and feasibility studies. Pakistan has agreed to bear all costs of the delegation’s travel and activities, sources said.
To implement the plan, the Bangladesh Sugar and Food Industries Corporation will supply the Pakistani team with technical details, operational information and other necessary baseline data on the relevant factories through diplomatic channels, and will formally invite Pakistan to inspect the mills and assess specific modernisation needs.
Sources said that after the on-site assessment, Pakistan will prepare a detailed feasibility study and a full investment proposal for rehabilitating and modernising the mills. Officials involved expect these proposals to form the basis for future investment and financing discussions between the two countries.
State-run sugar mills under the Bangladesh Sugar and Food Industries Corporation (BSFIC) currently face multiple challenges, including old and outdated machinery, underutilised production capacity, and a declining rate of sugar recovery from cane juice. Officials say urgent technological modernisation and product diversification are needed to ensure the sector’s long-term capacity and sustainability.
BSFIC currently operates 15 sugar mills, but their combined annual production capacity remains low, forcing the country to import raw sugar.
Business analysts say the initiative is timely. Of the 15 mills currently under BSFIC, only nine are operational. Outdated technology and low sugar recovery rates have reduced these factories’ production capacity, forcing large volumes of raw sugar to be imported every year. In 2020, production was suspended at six mills — Pabna, Shyampur, Panchagarh, Setabganj, Rangpur and Kushtia — to avoid major losses. Officials involved expect that with Pakistan’s technical assistance and the Industries Ministry’s diversification project, the country’s sugar sector will recover and become commercially profitable.
Industries Ministry Secretary Abdun Nasser Khan told Amar Desh that Pakistan’s proposals are being reviewed.