Global Rice News

Saudi Arabia has agreed to increase its imports of rice from Pakistan to meet 20% of the Kingdom’s total requirement, marking a significant boost for Pakistan’s rice exports. Pakistan and Saudi Arabia have been actively working to strengthen their bilateral trade and investment, with Saudi Arabia recently committing to investing $5 billion in Pakistan. This move to import more rice from Pakistan is part of Saudi Arabia’s efforts to support and aid Pakistan’s economy. Muhammad Zubair Motiwala, the head of the Trade Development Authority of Pakistan (TDAP), expressed Saudi Arabia’s eagerness to invest in Pakistan and increase its imports from the country. Currently, Pakistan’s rice exports to Saudi Arabia account for only 7% of the Kingdom’s requirement, but under the new agreement, this will be increased to 20%. This expansion in rice exports is expected to help Pakistan achieve $3 billion in rice exports for the first time ever.

Since July 2023 till March 2024, Pakistan has exported rice worth $2.9 billion, as declared by REAP officials, and the Rice Exporters Association of Pakistan (REAP) Chairman, Chela Ram Kewlani, confidently stated that Pakistan will easily cross the $3 billion export mark within the remaining four months of the current fiscal year. This positive development follows the recent visit of the Saudi foreign minister, Prince Faisal bin Farhan, to Pakistan, which aimed to enhance bilateral economic cooperation and push forward previously agreed investment deals. The visit took place a little over a week after Crown Prince Mohammed bin Salman met with Prime Minister Imran Khan in Makkah, where the Kingdom reiterated its commitment to expedite $5 billion worth of investments in Pakistan.

According to the TDAP chief, a high-powered Saudi delegation is expected to visit Pakistan to further boost trade and investment. The delegation is interested in various privatization projects, including Pakistan International Airlines (PIA) and Pakistan Steel Mills, as well as the stock exchange and direct investments in the private sector. Motiwala expressed confidence that Pakistan’s overall exports to Saudi Arabia will increase following diplomatic engagements between the two countries during the Saudi delegation’s visit.

While Pakistan has already exported goods worth $20.35 billion in the current fiscal year (July 2023-Feb 2024), with textile exports accounting for a major portion of $11.14 billion, Motiwala believes that the country is not utilizing its full potential, which he estimates to be more than $100 billion. He stressed the need to increase exports and reduce the costs of doing business and manufacturing in Pakistan. The TDAP is also planning to organize a single-country exhibition in Riyadh within the next two months to showcase a wide range of “Made-in-Pakistan” products.

Given the growing partnership between Pakistan and Saudi Arabia, the increased rice imports from Pakistan will not only benefit both countries but also contribute to the development of the rice industry in Pakistan. With Saudi Arabia becoming a major market for Pakistani rice, the prospects for the rice business in Pakistan are looking promising. The agreement to boost rice imports is a significant step forward in the bilateral trade relations between Pakistan and Saudi Arabia and is expected to have a positive impact on Pakistan’s overall economy.

Source: Arab News