Pakistan’s rice exports have witnessed a steep decline of 68.52% during the July–December 2025 period, with Basmati rice suffering the most, dropping 93.21%, according to the Rice Exporters Association. Exporters are raising alarms over the impact of higher duties, stiff regional competition, and global pricing disadvantages.
The downturn in rice shipments has been a growing concern for Pakistan’s agricultural export sector. Basmati rice, long considered a premium export commodity, has faced stiff competition from India, which has kept prices more competitive in international markets.
In a bid to revive the sector, the Ministry of Commerce has reduced export duty on Basmati rice by nine percent, while exporters of other rice varieties will enjoy a three percent duty cut.
“This unprecedented move will help Pakistani rice compete with Indian rice and is expected to boost exports if global demand remains stable,” said Malik Faisal, Chairman of the Rice Exporters Association.
The duty relief will be effective from January 23, 2026, until June 30, 2026. Exporters are hopeful that these measures will help restore momentum and achieve a target of $1.5 billion in rice exports by June 2026.
Industry analysts suggest that the reduction in duties could make Pakistani rice more attractive in key markets such as the Middle East, Africa, and Europe, provided international demand stays steady. With global rice demand showing signs of recovery, targeted incentives are seen as a critical step toward reviving the country’s rice export growth.