Pakistan’s second-largest export sector is now heading toward a major crisis. After textiles, the rice industry is witnessing a severe downturn, raising red flags across the trade and business community. Rice exporters warn that heavy taxation, rising costs, and uncertain government policies have pushed the industry into deep trouble. They say exports once surged from USD 300 million to USD 4 billion, turning many exporters into losses. Economists call the USD 1.5 billion drop in rice export earnings a serious economic blow for Pakistan.
The crisis isn’t limited to Pakistan. Vietnam, the world’s third-largest rice exporter, expects an 11.5% drop this year, with exports sliding to around 8 million tons.
- Exports to the Philippines slowed sharply after Manila enforced an import ban to protect local farmers.
- The ban remains in place until year-end, and traders believe it may be extended.
Despite the setback, Vietnam is actively targeting new markets and shifting to premium-quality rice, confident that global demand remains strong. Experts insist that “there is no major competition for high-end rice,” and Vietnam can still maintain exports between 8–9 million tons annually.
Pakistan must take a similar strategic approach. Without securing high-quality rice orders, growers are likely to switch to more profitable crops next year. If that happens, Pakistan could lose a significant portion of its rice export proceeds which will further weakening foreign exchange reserves and worsening the economic outlook.
