Rice exporters push for DLTL extension to boost exports and cut exchange pressure

KARACHI: Rice exporters in Pakistan have urged the government to extend the duty and taxes remission for exports (DLTL) scheme until September 30, 2026.

Senior Vice Chairman of the Rice Exporters Association of Pakistan (REAP), Javed Jillani, and former Chairman Rafiq Suleman said on June 27, that the extension would help exporters reduce financial pressure and support higher foreign exchange earnings. They added that timely approval could push rice exports beyond 3 billion US dollars.

Javed Jillani said that recent unrest in the Middle East badly affected Pakistan rice exports. He explained that shipping delays, limited vessel availability, and a sharp rise in freight charges disrupted export schedules. Because of these issues, many orders could not be completed on time, and some international buyers shifted to other suppliers.

He said the DLTL scheme, introduced through the export development fund, was designed to support exporters and improve competitiveness in global markets. However, it is set to expire on June 30, he stressed that extending it until September 30 is necessary due to current market challenges, so exporters can recover lost time and complete pending orders.

He further said Pakistani rice is known for its high quality and strong demand in many countries. However, rising transport costs and tough global competition have increased pressure on exporters.

Former REAP Chairman Rafiq Suleman warned that if the scheme is not extended, it could hurt not only exporters but also rice mills and farmers. He said lower exports may reduce local rice prices and affect farmer income, which could discourage future cultivation.

He also pointed out a 30 to 40% price gap between Indian and Pakistani rice in global markets. He said this makes competition difficult and called for a uniform rebate rate for both Basmati and Non-Basmati rice to improve fairness and competitiveness.

They urged the government, Ministry of Commerce, and Ministry of Finance to take immediate steps, maintaining export support, and introducing policies that strengthen exports, improve farmers’ income, and boost the national economy.