KARACHI/Lahore - Rice Export Association of Pakistan (REAP) on Friday expressed concern over huge decline in Basmati and non-Basmati rice export during last two years and urged the government to take appropriate measures to prevent further loss of foreign exchange in this regard.
According to REAP Chairman Mahmood Moulvi, Pakistan has suffered 44 percent decline in rice exports. He said that the country exported 28,615 m/tons Basmati rice in September 2016 whereas in September 2015 the export was 51,733 m/tons. He said that exports of non-Basmati in September 2016 stood at 152,735 m/tons, whereas 202,725 m/tons exported in the last corresponding year, showing a decrease of 24.65 percent.
Mahmood pointed that decline of non-Basmati exports is a real matter of concern as China has reduced its import due to high price issue. He blamed high input costs, overvalued currency and excessive taxes for this. He said Cambodia and Myanmar are emerging as emerging as main Chinese supplier. He also said that Vietnam and Thailand might not be able to compete with Pakistan, adding that another major threat for Pakistan’s non-Basmati sector would be India this year.
Mahmood said that Basmati rice export has been facing severe competition from India. He regretted that lack of research and non-availability of new seeds has caused low yields, adding that the high input costs have made Pakistani Basmati rice totally uncompetitive against Indian Basmati. He said that Pakistan also lost the important and lucrative Basmati market for Iran. To date, banks are not willing to accept documents for shipment to Iran, he said.
He urged State Bank of Pakistan to intervene in the matter and issue directives to commercial banks to accept documents allowing Pakistan exporters to recapture this lucrative and lost market.
The association requested the government to include Basmati and non-Basmati rice in all FTA agreements with China, Indonesia, Malaysia, Philippines. It is pertinent to mention here that Pakistan annually earns $2.0 billion through export of Basmati and non-Basmati rice.
Govt urged to ensure basic necessities to attract FDI
Foreign Direct Investment (FDI) has presented a dismal performance and posted some 38 percent decline during the first quarter of this fiscal year.
Pakistan Industrial and Traders Associations Front (PIAF) Chairman Irfan Iqbal Sheikh, quoting the State Bank of Pakistan (SBP) data, revealed that FDI continuously moving down and fell by 38 percent during July-September of FY17 compared to same period of last fiscal year. Pakistan fetched FDI amounting to $249 million during the first quarter of FY17 compared to $403 million in the corresponding period of FY16, depicting a decrease $154 million.
However, the second component of foreign investment - portfolio investment - has posted a surge of 130 percent because of improvement in the country's equity market, the PIAF chairman said. Net inflows of foreign investment in Pakistan comprising FDI, portfolio investment and foreign private investment fell by 54 percent during July-September of FY17. With the current decline, total foreign investment stood at $368 million at the end of first quarter of this fiscal year compared to $793.2 million in the same period of last fiscal year, depicting a decrease of $425 million. Irfan said foreign investors always seek a peaceful environment and basic infrastructure including utilities for fresh investment, therefore the government should ensure availability of basic necessities to attract more foreign investment.
Experts believe that political uncertainty and lake of infrastructure is largely contributing to lower foreign investment in Pakistan. Political parties should shun their differences for the sake of their country betterment and join hands with the government and the private sector for implementation of national agenda for economic revolution.