AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Following the government’s imposition of an additional 2% export tax, Pakistani rice exporters experienced a notable decline in rice exports during the fiscal year 2025. This downturn occurred as international rice prices fell sharply, impacting the expected revenue from global markets.
Rafiq Suleman, former Chairman of the Rice Exporters Association of Pakistan (REAP) and Convener of the FPCCI’s Rice Committee, criticized the government’s tax decision, suggesting that consulting with REAP leadership could have prevented the export decline and increased foreign exchange earnings.
Suleman emphasized the need for agricultural focus, advocating for affordable pesticides and seeds to improve crop yields. He recognized the efforts of exporters, who he described as engaging in a “jihad” to maintain rice exports amid numerous challenges, including plant protection issues that disrupted exports for nearly a month.
He warned that the additional tax could further reduce future export figures, with current exports totaling only $3.2 billion, falling short of the $4 billion target. Suleman urged the government to reduce excessive taxes and provide benefits like cheap electricity to support exporters.
Despite the efforts of REAP Chairman Malik Faisal and Senior Vice Chairman Javed Jelani, Suleman called for government action to consider their recommendations.
Statistics revealed that Pakistan’s total rice exports for fiscal year 2025 were 5.8 million metric tons, a 3.7% decrease from the previous year. The decline in revenue was more pronounced, dropping 14.7% from $3.93 billion to $3.36 billion, primarily due to falling international prices, particularly for non-Basmati rice.
Basmati rice exports increased by 3% in volume but saw a 5.2% decrease in revenue. The average price per kilogram fell 9.1%, from PKR 320.8 to PKR 291.6.
Non-Basmati rice exports experienced declines in both volume and value, generating $2.52 billion compared to $3.05 billion the previous year.
June 2025 saw a sharp decline, with exports dropping 40.6% compared to May and 37.1% year-on-year. Monthly export revenue fell to $150 million, a significant decrease.
In FY2025, rice’s share in Pakistan’s total exports declined to 10.5% from 12.8% the previous year, yet it remains a crucial component of the country’s export and foreign exchange earnings.