The Ministry of Commerce has sought a formal budget allocation of Rs20 billion to reimburse financial assistance already extended to rice exporters, as Pakistan works to strengthen the sector’s competitiveness in global markets facing intense price pressure from heavily subsidized Indian exports.
According to official sources, the Export Development Fund Board had earlier approved a temporary financing package for rice exporters. The funds were disbursed through the Export Development Fund as a short-term support measure and are now expected to be reimbursed through the federal budget under non-employee related expenditures.
To ensure transparency and prevent misuse of the assistance, the Ministry of Commerce developed a monitoring framework in coordination with the State Bank of Pakistan, Pakistan Single Window, and Customs authorities. The system is designed to ensure that financial support is used strictly for its intended purpose during the approved three-month period.
Rice remains Pakistan’s second-largest export after textiles and plays a crucial role in foreign exchange earnings, rural employment, and the agricultural economy. Export performance showed strong growth in earlier years, rising from $2.04 billion in FY2021 to $3.93 billion in FY2024, before declining to $3.35 billion in FY2025 due to changing global supply conditions.
The downturn has continued in the current fiscal year, with rice export earnings falling by around $854 million during the first six months compared to the same period last year. Non-basmati rice recorded a decline of $716 million, while basmati exports dropped by $138 million, reflecting pressure across both premium and non-premium categories.
Industry stakeholders say the decline is largely driven by global oversupply and India’s return to international markets with subsidy-backed pricing. Pakistani exporters are facing higher production and financing costs, along with weaker demand conditions, prompting calls for immediate policy support. A Rice Exporters Association of Pakistan representative also noted that the country holds a significant exportable surplus and could generate billions in additional earnings if competitiveness challenges are addressed.
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