Global Rice News

Saudi Arabia Agrees to Increase Rice Imports from Pakistan to Support $3 Billion Rice Exports

Saudi Arabia has made a commitment to increase rice imports from Pakistan to 20%, significantly contributing to Pakistan’s efforts to achieve $3 billion in rice exports for the first time ever. This move is part of a broader initiative to enhance bilateral trade and investment between the two nations, which includes Saudi Arabia’s recent commitment to invest $5 billion in Pakistan.

Muhammad Zubair Motiwala, head of the Trade Development Authority of Pakistan (TDAP), stated that Saudi Arabia is eager to invest in and support Pakistan. During an event organized by the Rice Exporters Association of Pakistan (REAP) in Karachi, Motiwala revealed that Saudi Arabia has agreed to raise rice imports from Pakistan to 20% of its total requirement. Currently, Pakistan’s rice exports to Saudi Arabia make up only 7% of the country’s requirement.

Pakistan has already exported rice worth $2.9 billion between July 2023 and March 2024, according to REAP officials. With this new commitment from Saudi Arabia, Chela Ram Kewlani, the REAP chairman, confidently stated that Pakistan will easily surpass the $3 billion export mark within the remaining four months of the fiscal year.

This development follows the recent visit of Saudi Arabia’s Foreign Minister, Prince Faisal bin Farhan, to Pakistan, during which the two countries aimed to strengthen their economic cooperation and advance investment deals. The visit followed a meeting between Crown Prince Mohammed bin Salman and Prime Minister Shehbaz Sharif, where the Kingdom reaffirmed its commitment to expedite $5 billion worth of investments.

Motiwala mentioned that a high-powered Saudi delegation is expected to visit Pakistan soon, further bolstering trade and investment between the two nations. He highlighted Saudi Arabia’s interest in various privatization projects, such as Pakistan International Airlines (PIA) and Pakistan Steel Mills, as well as the stock exchange and direct investment in the private sector.

While Pakistan has exported goods worth $20.35 billion during the current fiscal year, Motiwala believes that the country’s export potential exceeds $100 billion. He emphasized the importance of reducing the cost of doing business and manufacturing in Pakistan and expressed confidence that Pakistan’s exports to Saudi Arabia will increase significantly in the future.

As part of efforts to showcase Pakistani products, Pakistan will organize a single country exhibition in Riyadh within the next two months. The exhibition will feature a wide range of ‘Made-in Pakistan’ products, further promoting bilateral trade between the two countries.

Source: Arab News