Ethanol, which is a by-product of sugar, also experienced improved performance in FY23 due to favourable selling prices in the international market along with the rupee devaluation.

Sunny Kumar of Topline Securities said that net sales of the sector jumped 29pc year-on-year to Rs304bn in FY23 due to the export of 249,000 tonnes and 28pc increase in average domestic prices in FY23.

The federal government allowed the export of 250,000 tonnes of sugar in January 2023, subject to the condition that proceeds in dollars would be recovered from sugar exporters within 60 days from the date letters of credit (LCs) were opened.

International sugar prices have also increased 45pc from $18.30 in October 2022 to $26.60 per pound in September 2023. However, international prices have now declined and are currently at $21.40 per lb.

Average gross margins of the sector clocked in at 18pc in FY23 versus 15pc in FY22. Selling and distribution expenses rose by 38pc.