Islamabad: The government has resolved to extend further financial incentives to exporters by rolling out further facilities in the duty drawback scheme to make Pakistani rice more competitive in the international market with a view to encouraging exports.
The Ministry of Commerce has issued a notification that apart from the benefits given to exporters under the duty drawback scheme of Rs 20 billion, an additional concession of 2 per cent will also be granted. This decision is being taken to bring the Pakistani rice to the international market up to the competition level.
The notification says that new concessions have been granted to maintain the prices of Pakistani rice in line with the Indian rice in the international market and to benefit the export industry. The Ministry of Commerce has also published a formal notification on this and has also provided information on the revised rates.
The government’s decision allows exporters who export basmati rice to avail themselves of the facility of duty drawback on the product at a 9% concessional rate, and a 5% duty drawback rate would be applied on non-basmati rice, thereby offering better financial support to the exporters in this segment.
According to the notification, the period of these incentives has also been extended. In the past this facility was available till 30th June 2026, but now it has been decided to extend this facility till 30th September 2026 so exporters can compete with the world.
Analysts said that with this step by the government, Pakistan can boost rice exports and bolster its foreign exchange reserves and global competitiveness of the export industry, and exporters can offer rice to foreign buyers at competitive prices as a result of the concessions.
