Exports of Basmati rice are on the decline, with exporters shipping 66,863 tons valued at $76,861 million. The decline is attributed to stiff competition from India, which offers Pusa rice varieties similar to Basmati at lower prices. photo: file
ISLAMABAD:
Pakistan has suffered export losses of $1.1 billion due to the closure of the Afghan border, while the conflict in the Middle East has further eroded overseas shipments by an estimated $2 billion, the National Assembly’s Standing Committee on Trade said on Friday.
Meeting under the chairmanship of Javed Hanif Khan, the committee reviewed the impact of regional conflicts on Pakistan’s foreign trade.
Commerce Minister Jawad Paul told lawmakers that transit trade and exports had fallen by $1.2 billion during the first nine months of the current fiscal year.
He said the food sector had recorded a 25 percent drop in exports, while rice shipments had fallen sharply due to increasing competition from cheaper Indian rice in international markets.
The commerce secretary said Pakistani rice remained superior in quality but lost market share because Indian rice was sold at lower prices.
Ministry officials told the committee that Indian rice was sold at about $1,100 per bushel. ton, compared to about $1,300 per tonnes for Pakistani rice, making Pakistan’s exports less competitive.
They also said there had been complaints that Indian traders were rebranding Pakistani rice before selling it abroad, although no evidence had been found to substantiate these claims.
Earlier, the committee received reports from its sub-committee on the Copyright (Amendment) Bill 2026 and the Insurance Bill 2026, tabled by sub-committee convener Muhammad Nauman.
Nauman informed the committee that the Department of Commerce had drafted a new Insurance Bill 2026. However, he said the Trade Organizations (Amendment) Bill 2026 had been referred back to the main committee as member Farooq Sattar was unable to attend the meeting.
The Committee approved the Copyright (Amendment) Bill 2026.
Briefing lawmakers on the proposed insurance legislation, Commerce Minister Jawad Paul said the government had decided to replace, rather than amend, the existing insurance law because it was about 25 years old and required extensive reforms.
He said the federal cabinet had asked the ministry to draft an entirely new law instead of introducing piecemeal changes.
Officials informed the committee that the initial draft of the Insurance Act 2026 had been prepared by the Securities and Exchange Commission of Pakistan (SECP).
They said the proposed law would open up the insurance sector to greater competition while simplifying insurance business and licensing procedures.
Responding to a query by the committee chairman on regulation of the sector, officials said the SECP would continue to regulate the insurance industry after the new law comes into effect.
They further informed the committee that government institutions would be allowed to obtain insurance benefits from private companies in addition to state-owned insurance companies.
Officials also said the proposed legislation strengthened protections for policyholders by introducing enhanced consumer protection measures.
