Pakistani rice traders fear decline in exports amid competition with India

Pakistani rice traders fear decline in exports amid competition with India
Labourers load sacks of rice onto a truck at a market in Karachi on June 10, 2024. (AFP/File)
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Updated 04 October 2024
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Pakistani rice traders fear decline in exports amid competition with India

Pakistani rice traders fear decline in exports amid competition with India
  • Pakistan exported rice worth $3.9 billion last year that traders fear could drop by $1 billion due to India’s lifting of ban on exports
  • In a tit-for-tat move, Pakistani commerce ministry has withdrawn minimum export price to keep traders competitive in global market

ISLAMABAD: Pakistani rice traders said on Thursday that exports of the commodity could face a setback this year as neighboring India, one of the major competitors in the global market, had lifted restrictions on rice exports.

Pakistan exported rice worth $3.9 billion this year as compared to $2.15 billion last year, benefitting from India’s more-than-a-year-long ban on rice exports to fulfil its domestic needs. Last week, the Indian government lifted the ban and removed minimum export price of the commodity following a bumper crop yield this year.

In a tit-for-tat move, Pakistan has also withdrawn the minimum export price for all rice varieties to compete with Indian exporters in the global market. Pakistan’s minimum export price for the rice ranged from $450 per metric ton to $900 per metric ton for super basmati and white sella rice, according to a government notification available with Arab News.

The South Asian arch-rivals are the only countries that produce basmati rice which is famous for its unique flavour and aroma around the globe. India has been the largest exporter of rice worldwide, followed by Pakistan, Thailand and Vietnam.

“Now the basmati rice with a label of either from India or Pakistan will be available in the global market this year, so Pakistan’s exports are expected to decline by at least $1 billion from the previous year,” said Malik Faisal Jahangir, chairman of the Rice Exporters Association of Pakistan (REAP).

He said Pakistan was exporting basmati rice to Europe and the Middle Eastern countries on an average $1,250 per metric ton as the Indian commodity was not available in the market due to the ban.

“India is direct competitor of Pakistan in rice exports, therefore our exports could decline in the international market after India lifted restrictions on the commodity,” he told Arab News. “Pakistan has withdrawn the minimum export price in reaction to India’s decision and we hope this will help create a level playing field to boost our exports.”

Pakistan’s commerce ministry said the minimum export price was introduced last year in response to rising global prices and a ban imposed by India on rice exports.

“The minimum export price has now become an obstacle for Pakistani rice exporters to remain competitive in global markets after India lifted its export ban and following a decline in international rice prices,” the ministry said in a statement.

Pakistani authorities have set a target of $5 billion rice exports for this fiscal year, while the exporters feared the government’s “regressive export policies and additional taxes” would bring down rice exports to $3 billion.

Irfan Noor, a rice exporter, said the government has increased tax from 1 percent to 29 percent on sales and profits of the exporters through a hybrid tax regime that would “definitely impact the exports negatively.”

He said Pakistan’s $3.9 billion rice exports were “an exception” due to India’s export ban on the commodity.

“Our rice exports will decrease this year due to India’s entry in the market that is also offering incentives to its traders on exports,” Noor said.

He urged the Pakistani government to review its tax policies and support rice farmers in growing new seed varieties resistant to adverse impacts of climate change to boost the per acre yield.

“We can compete with India in the global market only if our policy-makers come up with a holistic approach both for farmers and the exporters,” he added.


Pakistan PM calls for building transparent society as world marks International Anti-Corruption Day

Pakistan PM calls for building transparent society as world marks International Anti-Corruption Day
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Pakistan PM calls for building transparent society as world marks International Anti-Corruption Day

Pakistan PM calls for building transparent society as world marks International Anti-Corruption Day
  • Last year, Pakistan improved its score on Transparency International Corruption Perceptions Index, moving seven spots up
  • Sharif urges all Pakistanis to work together for a future where rule of law prevails and accountability is bedrock for all

ISLAMABAD: Prime Minister Shehbaz Sharif has urged Pakistanis to help build a transparent and accountable society in the South Asian country, his office said on Monday, on the International Anti-Corruption Day.
The day is observed on December 9 each year since the passage of the United Nations Convention Against Corruption on October 31, 2003, to raise public awareness about how corruption threatens the stability and security of societies.
In his message, Sharif said corruption was a corrosive element that undermined economic development and destroyed the social fabric of societies, robbing nations of their potential and people of the benefits of fair governance and equal opportunities.
“I urge all Pakistanis to play their role in our quest for a corruption-free future. Let us stand together, united in our resolve to build a Pakistan where public resources are utilized efficiently for the welfare of our people,” Sharif said in a statement issued from his office.
“Let us work together for a future where rule of law prevails and where accountability is the bedrock for all.”
Last year, the Transparency International 2023 Corruption Perceptions Index (CPI) showed that Pakistan had improved its score, moving seven spots from 140 in 2022 to 133 in 2023.
The CPI ranks 180 countries and territories around the globe by their perceived levels of public sector corruption, scoring on a scale of 0 (highly corrupt) to 100 (very clean).
Sharif said this year’s theme, “Uniting with Youth Against Corruption: Shaping Tomorrow’s Integrity,” rightly highlighted the important role that Pakistan’s youth could play in the fight against corruption.
“Our younger generation deserves a future where they can thrive free from corruption,” he said. “Today, Pakistan joins the international community to renew our commitment to transparency, integrity, and accountability for now and for our future generations.”


Extreme heat puts garment factory workers at risk in Pakistan, Vietnam and Bangladesh

Extreme heat puts garment factory workers at risk in Pakistan, Vietnam and Bangladesh
Updated 39 min 47 sec ago
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Extreme heat puts garment factory workers at risk in Pakistan, Vietnam and Bangladesh

Extreme heat puts garment factory workers at risk in Pakistan, Vietnam and Bangladesh
  • New European Union regulations make retailers selling in the bloc legally liable for conditions at suppliers
  • Fixes to cool factories could include better ventilation and water evaporative cooling systems, study says

LONDON: Workers in some of the world’s biggest garment manufacturing hubs in Bangladesh, Vietnam, and Pakistan are increasingly exposed to extreme heat as climate change pushes temperatures up, a report found on Sunday, a problem multinational retailers and brands will have to help address.

New European Union regulations make retailers selling in the bloc, like Inditex, H&M and Nike, legally liable for conditions at their suppliers, putting pressure on them to help fund improvements to cool factories they source from.

In Dhaka, Hanoi, Ho Chi Minh City, Phnom Penh and Karachi, the number of days with “wet-bulb” temperatures — a measurement that accounts for air temperature as well as humidity — above 30.5 degrees Celsius jumped by 42 percent in 2020-2024 compared to 2005-2009, researchers at Cornell University’s Global Labor Institute found.

Above that threshold, the International Labor Organization recommends as much rest as work in any given hour to maintain safe core body temperature levels.

The report identified only three retailers — Nike, Levi’s, and VF Corp. — which specifically include protocols to protect workers from heat exhaustion in their supplier codes of conduct.

COMPANIES WARNED

“We’ve been talking to brands for ages now about this issue, and they’re only now starting to turn their attention to it,” Jason Judd, executive director at Cornell University’s Global Labor Institute, told Reuters.

“If a brand or retailer knows that temperatures in a production area are excessively high or doing damage to worker health, then they’re obligated under this new set of rules to do something about it,” he added.

The EU Corporate Sustainability Due Diligence Directive came into force in July and will start applying to large companies from mid-2027.

Fixes to cool factories could include better ventilation and water evaporative cooling systems, instead of energy-intensive and expensive air conditioning that would increase manufacturers’ carbon emissions.

Some factory owners would likely be willing to make such investments themselves, given how heat stress significantly impacts productivity, Judd said, but the EU rules highlight brands’ responsibility to address the issue too.

The report also urged retailers and brands to invest in higher wages and health protections so that workers can manage the risk of missing work days due to heatwaves.

Extreme heat and flooding could erase $65 billion in apparel export earnings from Bangladesh, Cambodia, Pakistan, and Vietnam by 2030, research from asset manager Schroders and the Global Labor Institute found last year.


Foreign Office says will repatriate Pakistanis stranded in Syria once Damascus airport reopens

Foreign Office says will repatriate Pakistanis stranded in Syria once Damascus airport reopens
Updated 09 December 2024
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Foreign Office says will repatriate Pakistanis stranded in Syria once Damascus airport reopens

Foreign Office says will repatriate Pakistanis stranded in Syria once Damascus airport reopens
  • Pakistan’s embassy says more than 1,300 Pakistani expatriates and pilgrims are currently stranded in Syria
  • Pakistani pilgrims and expatriates have expressed fears for their safety and called for immediate repatriation

ISLAMABAD: Pakistan’s Foreign Office said on Sunday that it would repatriate more than 1,300 Pakistanis stranded in Syria once the Damascus airport reopens, following the fall of President Bashar Assad’s government.
Syria opposition forces raced into Damascus unopposed on Sunday, overthrowing President Assad and ending nearly six decades of his family’s iron-fisted rule after a lightning advance that reversed the course of a 13-year civil war.
In one of the most consequential turning points in the Middle East for generations, the fall of Assad’s government wiped out a bastion from which Iran and Russia exercised influence across the Arab world. Moscow gave him and his family asylum.
Pakistan’s Foreign Office said it was closely monitoring the evolving situation in Syria as shops and restaurants closed early in line with a curfew imposed by the Syrian opposition and people could be seen briskly walking home with stacks of bread.
“Pakistani nationals are safe in Syria and have been advised to exercise caution. The Embassy of Pakistan in Syria is open for support and advice,” the Foreign Office said on Sunday night.
“As of now Damascus Airport is closed. Our embassy remains in contact with stranded Pakistani nationals, including Zaireen [pilgrims]. It will facilitate their return once the airport opens.”
Pakistan’s embassy in Syria said it was focusing on accommodating Pakistani nationals at a school run by it so that they could have a secure place to stay while it arranges flights for their repatriation to Pakistan.
Muhammad Nafees, an official at the Pakistani embassy in Damascus, told Arab News that Syria’s airports and borders with Jordan and Oman were currently closed, posing a “major challenge” to the repatriation effort.
The official said there were around 1,200 Pakistanis expatriates living in Syria, while around 140 Pakistani pilgrims were stranded in the Sayyidah Zaynab city near Damascus.
“They were supposed to return from the pilgrimage by December 10, but are unable to proceed due to the suspension of flight operations and non-functional airports,” he added.
Separately, Pakistan’s deputy prime minister and foreign minister, Ishaq Dar, held a telephonic conversation with Turkish Foreign Minister Hakan Fidan on the unfolding situation in Syria.
“They also discussed possible cooperation between the two countries for the safety of the Pakistan nationals,” the Pakistani foreign ministry said.
Speaking to Arab News on Sunday, Pakistani pilgrims and expatriates in Syria expressed fears for their safety and called for expediting efforts to repatriate them.
Abeel Hassan, a pilgrim from Pakistan’s Parachinar, said although the situation was calm so far, the pilgrims were worried about their safety.
“Our group consists of 14 people, including women, and we have limited finances and cannot afford an extended stay at the hotel,” he said.
Ilyas Naqvi, a Pakistani expatriate from Islamabad who has been living and working in Sayyidah Zaynab along with his wife and two sons since 2000, wished for immediate repatriation.
“We request that our embassy and the Government of Pakistan act swiftly to evacuate us from Syria as soon as possible as many of us have small children,” he told Arab News, adding that there were around 200 Pakistanis, including women and children, living in Sayyidah Zaynab.
“Although the new forces have not yet threatened the people, everyone is very scared.”


Chinese firm to establish textile parks in Pakistan to boost trade, technology transfer — Islamabad’s envoy

Chinese firm to establish textile parks in Pakistan to boost trade, technology transfer — Islamabad’s envoy
Updated 08 December 2024
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Chinese firm to establish textile parks in Pakistan to boost trade, technology transfer — Islamabad’s envoy

Chinese firm to establish textile parks in Pakistan to boost trade, technology transfer — Islamabad’s envoy
  • The textile parks would be set up by Ruyi Shandong Group, which has expanded globally over the past decade through acquisitions, investments
  • It will establish international-standard textile parks in Sindh, Punjab to help generate up to $5 billion in textile exports from Pakistan

ISLAMABAD: The China National Textile and Apparel Council (CNTAC) and Pakistan’s Board of Investment have signed a memorandum of understanding (MoU) for the establishment of textile parks in Pakistan by Chinese firm Ruyi Shandong Group, Pakistani state media reported on Sunday, citing Islamabad’s envoy to Beijing.
The CNTAC is China’s national textile association and an integrated non-profit legal entity that acts as a self-disciplined intermediary for the industry. The understanding between the two sides was reached at the China Textile Conference held in Shaoxing this week.
Focusing on innovation environment, materials, artificial intelligence and production processes, the participants at the conference discussed leading trends in industry innovation, aiming to promote transformation and optimization of the global textile supply chain.
“The textile sector is the backbone of Pakistan’s economy and major contributor to its exports,” Pakistan’s Ambassador to China Khalil Hashmi was quoted as saying by the Radio Pakistan broadcaster.
“These textile parks would enhance bilateral trade, foster technology transfer, and enhance capacity [of Pakistani textile industry].”
Beijing has invested over $65 billion in energy, infrastructure and other projects under the China-Pakistan Economic Corridor (CPEC), a part of China’s Belt and Road Initiative, that aims to connect China to the Arabian Sea through a network of roads, railways, pipelines and ports in Pakistan and help Islamabad expand and modernize its economy.
The textile parks would be set up by Ruyi Shandong Group, one of China’s largest textile and clothing manufacturers, which has expanded globally over the past decade through acquisitions and investments, according to Pakistani officials.
The group has previously invested in a coal power plant in Pakistan under the CPEC and will establish international-standard textile parks in Sindh and Punjab provinces to help generate up to $5 billion in textile exports from Pakistan. The foundation stone of the parks is expected to be laid by the end of this year and they would employ up to 500,000 people.


Pakistan receives 72,000 applications for government Hajj scheme as Dec. 10 deadline approaches

Pakistan receives 72,000 applications for government Hajj scheme as Dec. 10 deadline approaches
Updated 08 December 2024
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Pakistan receives 72,000 applications for government Hajj scheme as Dec. 10 deadline approaches

Pakistan receives 72,000 applications for government Hajj scheme as Dec. 10 deadline approaches
  • Saudi Arabia has allotted Pakistan a quota of 179,210 pilgrims for upcoming Hajj pilgrimage
  • Pakistan allowed intending pilgrims to pay Hajj fees in installments for the first time this year

KARACHI: Pakistan has received 72,000 applications for this year’s Hajj pilgrimage under the government scheme, the religious affairs ministry said on Sunday, two days before the expiry of Dec. 10 deadline to submit applications.
Saudi Arabia has allotted Pakistan a total quota of 179,210 pilgrims for the upcoming Hajj pilgrimage, which would be divided equally between the government and private schemes. Around 15 Pakistani banks started receiving applications from intending pilgrims on Nov. 18
The government last week extended the Dec. 3 deadline to submit applications to Dec. 10 to receive applications for 21,000 seats still vacant. All applications received till Dec. 3 have been accepted, including the ones received through the sponsorship scheme.
“Two days are left to enter the government Hajj scheme,” the religious affairs ministry said in a statement. “Designated banks will continue receiving Hajj applications on Monday and Tuesday.”
Last year, Pakistan surrendered 21,000 Hajj seats to Saudi Arabia due to a shortage of applications, but this year the government is hopeful of achieving the required number of applications till December 10.
The religious affairs ministry last month announced the country’s Hajj 2025 policy, allowing pilgrims for the first time to pay Hajj fees in installments.
Under the government scheme, the first installment of Hajj dues, Rs200,000 ($717), must be deposited along with the Hajj application, while a second installment of Rs400,000 ($1,435) has to be deposited within ten days of the balloting. The remaining amount has to be deposited by Feb. 10 next year.
According to the religious affairs ministry, overseas Pakistanis can also sponsor their loved ones for the pilgrimage. The ministry has also launched the “Pak Hajj 2025” mobile application to guide and facilitate pilgrims. The app is available for both Android and iPhone users.
The Pakistani government has also announced a reduction in airfares for Hajj 2025, with a Rs14,000 ($50) drop in ticket prices. Pilgrims enrolled in the federal program will now pay Rs220,000 for airfare, down from last year’s Rs234,000.
National carrier Pakistan International Airlines (PIA), Saudi Airlines and other private airlines have agreed to the relief package, according to the Pakistani government.