By Muhammad Bilal 

The Ministry of Commerce has sought a formal budget allocation of Rs. 20 billion to cover financial support already provided to rice exporters, as the government moves to help the sector remain competitive against heavily subsidized Indian exports in international markets.

According to sources, the Export Development Fund Board approved the assistance package for rice exporters as a temporary financing arrangement. The funds were disbursed through the Export Development Fund and are now expected to be reimbursed through a federal budget allocation under non-employee related expenditure.

To prevent misuse of the financial assistance, the Ministry of Commerce developed a monitoring mechanism in coordination with the State Bank of Pakistan, Pakistan Single Window, and the Customs authorities. The framework was designed to ensure that the support package is utilized strictly for its intended purpose during the three-month assistance period.

Rice is Pakistan’s second largest export after textiles and remains a major source of foreign exchange earnings, rural employment, and agricultural economic activity. Although rice exports increased from $2.04 billion in fiscal year 2021 to $3.93 billion in fiscal year 2024, earnings declined to $3.35 billion in fiscal year 2025 as major global suppliers returned to the market.

The downturn has accelerated during the current fiscal year. During the first six months of the year, rice export earnings fell by approximately $854 million compared with the same period last year. Non-basmati rice accounted for a decline of $716 million, while basmati exports dropped by $138 million, indicating weakening competitiveness across both premium and bulk export segments.

Industry stakeholders attribute the decline largely to global oversupply and India’s aggressive return to export markets through subsidy-backed pricing. Indian basmati rice is currently being offered at around $850 to $900 per metric ton, significantly below Pakistani basmati, which is priced between $1,150 and $1,275 per metric ton. Higher domestic paddy prices, elevated financing costs, inventory accumulation in importing countries, and regional trade challenges have further increased pressure on exporters and created liquidity constraints throughout the supply chain.

Speaking before a parliamentary forum, Rice Exporters Association of Pakistan representative Malik Faisal Jahangir said Pakistan has an exportable surplus of approximately 4.1 million metric tons of rice. He argued that the country could generate nearly $2 billion in additional export earnings in the near term if immediate measures are taken to address short-term competitiveness challenges facing the sector.

Published Date: June 7, 2026