Government Approves Rs. 20 Billion Support Plan for Rice Exporters
The Ministry of Commerce has sought a formal allocation of Rs. 20 billion to reimburse financial support previously extended to rice exporters, aimed at improving the sector’s competitiveness in international markets.
According to official sources, the Export Development Fund Board had already approved a temporary support mechanism for exporters. The amount was disbursed through the Export Development Fund and is now expected to be adjusted through a federal budget allocation under non-salary expenditure.
Monitoring Mechanism Introduced
To ensure transparency and proper utilization of funds, the Ministry of Commerce has developed a monitoring framework in collaboration with the State Bank of Pakistan, Pakistan Single Window, and customs authorities.
Officials stated that the system is designed to ensure the financial assistance is used strictly for its intended purpose during the approved support period.
Importance of the Rice Sector
Rice is Pakistan’s second-largest export commodity after textiles and plays a key role in foreign exchange earnings, rural employment, and the agriculture sector.
Although exports increased significantly in recent years, recent data shows a decline in earnings due to changing global market conditions and increased competition.
Export Challenges and Market Pressure
Industry stakeholders say global oversupply and the return of major exporting countries have increased competition in international markets.
They also point to higher domestic production costs, financing pressures, and inventory challenges in importing countries as key factors affecting export performance.
Price Competition in Global Markets
Reports suggest that competing exporters are offering rice at lower international prices, creating pressure on Pakistan’s export competitiveness, particularly in both premium and non-premium segments.
Industry Outlook
Export representatives estimate that Pakistan has significant surplus rice available for export and believe that addressing short-term challenges could help improve foreign exchange earnings in the coming months.
