Pakistan eyes up to $7 billion rice exports to support dwindling economy

ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal said on Monday the South Asian country aimed to boost its rice exports from the existing $4 billion to as much as $7 billion to support its dwindling economy, Pakistan state media reported.
Kamal said this during a meeting with the Rice Exporters Association of Pakistan (REAP) representatives. Rice exports play a vital role in Pakistan’s economy, ranking second in export value after cotton.
Pakistan is trying to navigate a prolonged economic crisis by actively pursuing foreign investments and enhanced trade opportunities, while it has also reached a staff-level agreement with the International Monetary Fund (IMF) for a $7 billion loan.
The South Asian holds 25 percent of the European rice export market, compared to India’s 16 percent, and there is a need for collaboration between the government and exporters to maintain this competitive edge, according to the commerce minister.
“Rice exports play a vital role in Pakistan’s economy, ranking second in export value after cotton,” Kamal was quoted as saying by the state-run APP news agency. “Rice exporters are a primary source of revenue and employment, with the government aiming to increase exports from $4 billion to $6-7 billion in the near future.”
Pakistan exported rice worth $3.9 billion this year as compared to $2.15 billion last year. It has also withdrawn the minimum export price for all rice varieties to compete with Indian exporters in the global market.
India has been the largest exporter of rice worldwide, followed by Pakistan, Thailand and Vietnam. The South Asian arch-rivals are also the only countries that produce basmati rice which is famous for its unique flavour and aroma around the globe.
“We are focusing on improving our standards to meet international food safety requirements, especially in Europe,” Kamal said.
Increasing rice exports to Malaysia were also part of the discussions held during a recent visit by Malaysian Prime Minister Anwar Ibrahim, who will host a business delegation led by Kamal in November to explore new opportunities.
REAP Chairman Malik Faisal Jahangir said Pakistan’s rice exports faced fewer regulatory challenges with only 74 rapid alerts for pesticides issued last year compared to 264 for India, according to the APP report.
He said Pakistan remained one of the “lowest-risk countries” concerning food safety standards.
Stressing the need to educate farmers to improve quality of rice production, Kamal called for a joint effort by all stakeholders to develop a five-year strategy to enhance the country’s rice export capacity and international standards compliance.
He urged REAP to give proposals on how to meet the government’s export targets within the next year, keeping in mind the “stringent” food safety standards in the European Union.