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Pakistan aims to export 5 million tonnes of rice amid India ban

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1 year ago

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  • “Pakistan expected a bumper rice crop this year,” REAP chief says.
  • Country exported 3.7m tonnes rice valued at $2.14b last fiscal year. 
  • This year, Kewlani says, Pakistan can export 5m tonnes of rice.

KARACHI: Pakistan’s rice exports are projected to rise in the current fiscal year due to the Indian ban on rice exports and the exploration of new markets in Russia and Mexico, the Rice Exporters Association of Pakistan (REAP) said, according to The News.

REAP Chairman Chela Ram Kewlani said Pakistan exported 3.7 million tonnes of rice valued at $2.14 billion in the previous fiscal year, despite facing various challenges.

“Despite devastating floods, crop shortage and many other challenges, we exported 3.7 million tonnes amounting to $2.14 billion,” he said.

The REAP chief was optimistic about Pakistan achieving its goal of 5 million tonnes of rice worth $3 billion in the current fiscal year, which began in July.

“India’s ban on rice exports will have significant impacts on global rice trade dynamics. This will give a good opportunity for Pakistan to fill the supply gap and expand its market share in major rice-buying countries.”

India, the world’s biggest rice exporter, banned exports of non-basmati rice last month to ensure domestic supplies amid rising food inflation. Kewlani said Pakistan could benefit from higher export volumes and increased revenues as a result of the ban.

“Overall, the ban may create a favorable trade environment for Pakistan’s rice exports.” Industry officials said Pakistan’s basmati rice prices soared to $500 per tonnes in the international market, up almost $100 from a month ago, as demand surged after the export ban by India.

Pakistani rice is enjoying a premium for its superior quality and could rise further to $600 per tonnes in the coming months, one trader said. “Pakistan has a golden opportunity to boost its rice exports and earn valuable foreign exchange as India has banned its rice exports due to drought.” he said.

Pakistan is the world’s fourth-largest rice exporter after India, Thailand, and Vietnam. Kewlani said Pakistani non-basmati rice, which was selling at $450 per tonnes before the ban, had also jumped to $500 per tonnes as buyers shifted to alternative sources.

He also said that Russia had registered 15 more Pakistani companies to export rice to the country and 12 more were in the process of registration. “This opportunity will also be beneficial for generation of extra foreign exchange for our country, as Russia is a big and potential market for Pakistani rice.”

Kewlani added that a recent visit by Mexican technical experts had gone well and they were satisfied with the compliance of standard operating procedures by Pakistani rice exporters. He hoped that Mexico would soon lift a ban on Pakistani rice and resume imports.

He said Pakistan expected a bumper rice crop this year, with an annual output of around 9 million tonnes. “We hope that we can easily achieve our target of 5 million tonnes worth $3 billion this year.”

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Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

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The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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