Basmati rice exports are slowing, with exporters shipping 66,863 metric tonnes, worth $76.861 million. This decline is attributed to strong competition from India which offers Pusa rice varieties that resemble Basmati at lower prices. photo: file
ISLAMABAD:
Pakistan suffered export losses of $1.1 billion due to the closure of the Afghan border, while the Middle East conflict further eroded overseas shipments by around $2 billion, the National Assembly’s Standing Committee on Commerce was informed on Friday.
Meeting under the chairmanship of Javed Hanif Khan, the committee examined the impact of regional conflicts on Pakistan’s foreign trade.
Commerce Secretary Jawad Paul told lawmakers that transit trade and exports declined by $1.2 billion in the first nine months of the current fiscal year.
He said the food sector recorded a 25 percent decline in exports, while rice shipments fell sharply due to increasing competition from cheaper Indian rice in international markets.
The commerce secretary said Pakistani rice remained of high quality but was losing market share because Indian rice was selling at lower prices.
Ministry officials told the committee that Indian rice was sold at around $1,100 per tonne, compared to around $1,300 per tonne for Pakistani rice, making Pakistani exports less competitive.
They also said complaints had been made that Indian traders were renaming Pakistani rice before selling it abroad, although no evidence was found to support these claims.
Earlier, the committee received reports from its subcommittee on the Copyright (Amendment) Bill, 2026 and the Insurance Bill, 2026, presented by subcommittee Chairman Muhammad Nauman.
Nauman informed the committee that the Commerce Ministry had prepared a new Insurance Bill 2026. However, he said the Commercial Organizations (Amendment) Bill 2026 was referred to the main committee as member Farooq Sattar could not attend the meeting.
The committee approved the Copyright (Amendment) Bill, 2026.
Briefing lawmakers on the proposed insurance law, Commerce Secretary Jawad Paul said the government 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 amendments.
Officials informed the committee that the initial draft of the Insurance Bill 2026 was 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 question from the committee chairman regarding regulation of the sector, the officials said the SECP would continue to regulate the insurance sector 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 government insurers.
Officials also said the bill strengthens guarantees for policyholders by introducing enhanced consumer protection measures.
