Islamabad, January 18, 2026 – Pakistan’s rice exports plunged 50% during the first half of fiscal year 2025-26 (July–December), declining to $940 million from $1.88 billion in the same period last year, according to the Pakistan Bureau of Statistics (PBS).
Industry experts said the Federal Board of Revenue’s (FBR) documentation and tax compliance drive has significantly affected exports. The Finance Act 2024 replaced the Final Tax Regime (FTR) with the Normal Tax Regime (NTR), requiring exporters to file detailed tax returns and transaction records, increasing compliance costs.
In addition, international competition and pricing pressures weighed on Pakistan’s rice exports. Indian rice, priced lower in global markets, displaced Pakistani rice, reducing demand. Non-Basmati rice, previously exported at around $550 per ton, fetched about $350 per ton this year.
Basmati rice exports fell 36% to $278 million, while non-Basmati rice declined 54% to $661 million. In terms of quantity, Pakistan exported 1.82 million metric tons compared to 3.06 million metric tons during the same period last year, indicating that volume losses were the primary driver.
Experts note that India’s removal of rice export restrictions intensified global competition, while domestic tax policy changes, including the shift from a 1% FTR to a 29% corporate tax plus up to 10% Super Tax under NTR, further reduced exporters’ profit margins and increased regulatory risks.