Following the government’s imposition of a 2% tax on exporters, Pakistan’s rice exports declined significantly in fiscal year 2025, largely due to falling international rice prices. Rafiq Suleman, former Chairman of the Rice Exporters Association of Pakistan (REAP), criticized the tax, stating that collaboration with REAP could have boosted exports and foreign exchange earnings.

He emphasized the importance of improving agricultural practices, providing affordable pesticides and seeds, and addressing plant protection issues that impacted exports.

Suleman warned that, due to the tax, next year’s rice exports might not exceed $3.5 billion, compared to the current figure of $3.2 billion. He urged the government to reduce taxes and provide support to exporters. Despite challenges, REAP leaders like Malik Faisal and Javed Jelani are advocating for the industry.

In fiscal year 2025, Pakistan exported 5.8 million metric tons of rice, a 3.7% decline from the previous year, with revenue dropping 14.7% from $3.93 billion to $3.36 billion due to lower prices, particularly for non-Basmati rice. Basmati exports increased slightly in volume but saw a 5.2% decrease in revenue.

June 2025 saw a sharp 40.6% decline in exports compared to May, while the share of total rice in Pakistan’s exports dropped from 12.8% to 10.5%. Despite the downturn, the rice sector remains crucial for the country’s export earnings.