The launch of export rebates for rice, coupled with robust growth in agriculture exports, positions Pakistan’s agriculture sector for a brighter future in global markets.
ISLAMABAD: Pakistan’s agriculture sector is witnessing a transformative period, with the government and key industry players taking significant steps to enhance export growth, support farmers, and increase global competitiveness.
In a landmark move, the Government of Pakistan has introduced a new export rebate scheme for rice exporters, aimed at increasing the competitiveness of Pakistani rice on the global market. The scheme offers a 9 % rebate on basmati rice and a 3 % rebate on non‑basmati rice, marking a major policy shift that will directly benefit the export industry.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has praised the initiative, highlighting its potential to boost export earnings and close the price gap with competitors like India. Industry experts predict that this move will significantly enhance the viability of rice exports, which have been facing challenges due to price volatility and international competition.
Rebate scheme for rice exporters: A game-changer for agriculture
The federal government has earmarked a substantial Rs15 billion in rebates for rice exporters, providing vital financial support for the industry. This scheme is expected to improve Pakistan’s market share in key rice markets, such as China, Tanzania, Kenya, and the UAE, and provide a much-needed cushion for exporters facing stiff competition. Industry representatives are optimistic that the rebate will lead to a more stable rice export environment, ensuring sustained income for farmers and exporters alike.
Record rice exports propel Pakistan to 3rd place globally
In parallel with the government’s rebate policy, Pakistan’s rice export performance has reached impressive heights, making the country the third-largest rice exporter globally. Recent trade data reveals that in December 2025, Pakistan exported 489,000 tonnes of rice, surpassing many traditional competitors like Vietnam. This growth has been largely driven by a surge in basmati rice exports, which saw a 50 % increase in shipments.
Pakistan’s rice exports are expected to continue this upward trajectory in 2026, as the country strengthens its foothold in international markets. The 9 % rebate for basmati rice exporters is expected to further bolster the sector’s performance, allowing it to compete more effectively on the world stage.
Agriculture remains a key driver for economic growth
While rice continues to dominate the agricultural export landscape, other key sectors in Pakistan’s agriculture industry are also experiencing significant growth. Agriculture remains a critical contributor to the country’s export revenues, and the government is focusing on strengthening policies that support export‑led growth. The recent surge in rice exports is just one example of how Pakistan’s agriculture sector is poised to benefit from more strategic policy interventions.
With a focus on improving export standards and increasing value-added product exports, Pakistan is positioning itself as a competitive player in global agricultural markets. Farmers’ income is expected to rise, while the broader economy stands to benefit from the increased export revenue generated by agriculture.
A promising future for Pakistan’s agriculture
The combined impact of the export rebate scheme, Pakistan’s growing rice exports, and supportive government policies provides a strong foundation for future growth in the agriculture sector. Moving forward, stakeholders in the rice export industry and beyond are confident that the agricultural landscape will continue to thrive. These developments underscore the government’s commitment to making agriculture a central pillar of Pakistan’s economic growth and improving the livelihoods of those in the farming community.
