Global Rice News

Combining Sound Policies and an Enabling Business Environment for Pakistan’s Exports

In an effort to double Pakistan’s exports in the next two years, the government has taken a unique step by forming an export advisory committee consisting of members from various export sectors, including agriculture. While the textile industry has traditionally dominated exports, other sectors have been exporting their products without much government facilitation. These sectors, which do not require subsidies, simply seek the removal of small obstacles and bureaucratic red tape.

Recently, there has been a significant increase in exports of sheet glass following the provision of non-subsidized facilitations to glass manufacturers. Additionally, Pakistan’s agriculture exports saw a sudden surge of 30% in the first four months of this fiscal year, while imports decreased significantly. Cement exports also experienced a notable 40% increase during this period, while jewelry exports grew by 30%.

Although the textile sector experienced a negative growth rate of -6.3% in textile exports from July to October 2023, there was a slight increase in October. The efforts made to promote the IT sector are expected to generate $10 billion in exports over the next two years, with IT exports reaching around $3 billion this year. Despite the prevailing gloom in global markets, experts are optimistic that Pakistan can achieve this target by tapping into the non-textile potential of the country.

One of the key sectors with immense potential is agriculture. Shahzad Ali Malik, chairman of the Pakistan Hitech Hybrid Seed Association (PHHSA), points out that agricultural growth in all crops has decreased over the past three decades. However, there has been significant growth in the yields of coarse rice and maize in recent years. Private sector entrepreneurs have played a crucial role in this growth by providing quality hybrid seeds and guiding farmers throughout the cultivation cycle.

The cultivation of coarse rice and maize has significantly reduced poverty in the regions where they are grown, as farmers now get three to four times higher yields compared to conventional low-yield seeds. To meet the growing demand, the production of hybrid rice seeds, specifically for coarse rice, has begun in the country, catering to 50% of the country’s needs. In addition to capacity enhancement initiatives, other entrepreneurs have also signed joint ventures to produce hybrid rice seeds. Moreover, maize importers are planning to establish their own hybrid rice production plants.

China, which had been a key player in agriculture, is gradually reducing its involvement. China provided Pakistan with hybrid rice technology, and recently, a Chinese company agreed to supply hybrid chili seeds to Guard Agriculture. Guard Agriculture will distribute these seeds to farmers and export the produce to China in the first phase. They will also acquire technology from the Chinese company to produce hybrid chili seeds in Pakistan. Concurrently, the Chinese have signed an agreement with Karachi-based Techno group to process chili produced from Chinese seeds and export the total chili powder produced.

Though the government has set an ambitious target of achieving $100 billion in exports in the next two years, meeting this goal may prove challenging. However, even reaching the $35 billion mark by the end of this year would be an accomplishment.

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