Rice exports hit by Indian price edge

NA panel informed Afghan border closure cost Pakistan $1.1b in trade

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 Standing Committee on Commerce was informed on Friday.

Meeting under the chairmanship of Javed Hanif Khan, the committee reviewed the impact of regional conflicts on Pakistan's external trade.

Commerce Secretary Jawad Paul told lawmakers that transit trade and exports had declined by $1.2 billion during the first nine months of the current fiscal year.

He said the food sector had recorded a 25 per cent decline 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 was losing market share because Indian rice was selling at lower prices.

Ministry officials told the committee that Indian rice was being sold at around $1,100 per tonne, compared with approximately $1,300 per tonne 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 those claims.

Earlier, the committee received reports from its subcommittee on the Copyright (Amendment) Bill 2026 and the Insurance Bill 2026, presented by subcommittee convener Muhammad Nauman.

Nauman informed the committee that the Ministry of Commerce had prepared a new Insurance Bill 2026. However, he said the Trade Organisations (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 Secretary Jawad Paul said the government had decided to replace, rather than amend, the existing insurance law because it was around 25 years old and required extensive reforms.

He said the federal cabinet had directed the ministry to draft an entirely new law instead of introducing piecemeal amendments.

Officials informed the committee that the initial draft of the Insurance Bill 2026 had been prepared by the Securities and Exchange Commission of Pakistan (SECP).

They said the proposed law would open the insurance sector to greater competition while simplifying insurance business operations and licensing procedures.

Responding to a query by the committee chairman regarding regulation of the sector, officials said the SECP would continue to regulate the insurance industry after the new law comes into force.

They further informed the committee that government institutions would be allowed to obtain insurance services from private companies in addition to state-owned insurers.

Officials also said the proposed legislation strengthened safeguards for policyholders by introducing enhanced consumer protection measures.