The federal government has raised the Duty and Tax Remission for Exports (DLTL) incentive for non-basmati rice exports from 3 percent to 5 percent, aiming to strengthen Pakistan’s position in the international rice market. The increase is expected to provide exporters with additional financial support as they compete with lower-priced rice from other countries.
The decision was approved during a meeting of the Export Development Fund (EDF) after the Rice Exporters Association of Pakistan (REAP) urged the government to enhance export incentives for the rice sector.
While the government approved an increase for non-basmati rice, it decided to keep the 9 percent DLTL incentive for basmati rice unchanged. REAP had requested that both categories receive the same 9 percent incentive and also sought an extension of the DLTL scheme for two 90-day export periods. Although the full proposal was not accepted, the association welcomed the increase, describing it as a positive step for exporters.
According to REAP, Pakistani rice exporters are currently facing strong competition from India, where both basmati and non-basmati rice are available at comparatively lower prices. The enhanced incentive is expected to reduce some of the cost pressure on exporters, helping them remain competitive and secure more international orders.
Industry representatives believe the revised incentive will support Pakistan’s rice exports by making local products more attractive in overseas markets. Increased exports could also encourage farmers to expand rice cultivation in the next growing season, resulting in higher agricultural production and better earnings for growers.
The association added that stronger rice exports would contribute to Pakistan’s foreign exchange reserves and support the country’s overall export performance.
Rice remains one of Pakistan’s most important agricultural export products and is a major contributor to national export earnings. The government’s latest decision is expected to provide relief to exporters while helping the rice industry maintain its presence in key global markets amid rising international competition.
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