The Standing Committee on Commerce, chaired by MNA Muhammad Jawed Hanif Khan, convened at the Parliament House to address critical issues impacting Pakistan’s trade and export sector. A major point of discussion was the disruption in rice exports, following 72 interceptions by the European Union (EU), which have raised significant concerns among exporters.
MNA Sharmila Faruqui brought the issue to the forefront through a Calling Attention Notice, highlighting deficiencies in quality control, particularly during inspections, as the primary reason for the EU’s repeated alerts. The committee expressed dissatisfaction with the Department of Food Ministry’s failure to address these concerns effectively. In response, the government is now considering establishing a new regulatory authority to enhance food security measures and ensure stricter quality standards.
Punjab and Sindh, which together contribute around 5 million tons to Pakistan’s rice exports, are at the heart of this crisis. Committee member Dr. Mirza Ikhtiar Baig revealed that the EU had issued over 100 quality-related alerts on Pakistani rice, citing the presence of counterfeit rice in shipments. He raised concerns over adulteration, questioning how such shipments could pass domestic inspections unnoticed. Faruqui reiterated that the EU’s 72 restrictions in 2024 underscored persistent lapses in quality control. While the government is considering a National Food Safety Authority to address the issue, she criticised the increasing number of regulatory bodies without tangible improvements.
However, Commerce Secretary Jawad Paul countered these claims, stating that no formal EU warning had been issued against Pakistani rice exports. “An issue that does not exist is being unnecessarily escalated,” he remarked. Committee member Khurshid Junejo, however, noted that the EU had flagged a specific consignment from Punjab, stressing the need for close collaboration with agricultural authorities to resolve export challenges.
Despite these concerns, Dr. Baig pointed out that Pakistan had recorded a strong rice harvest and a robust export performance this year. Ministry of Commerce officials assured the committee that quality enhancement efforts were already underway in coordination with provincial authorities. Several meetings have been held with provincial representatives to implement stricter quality control mechanisms. Additionally, the Trading Corporation of Pakistan (TCP) recently secured a 50,000-ton rice export order from Bangladesh, reflecting continued global demand for Pakistani rice. However, committee members emphasized the urgency of addressing quality concerns to prevent further disruptions.
To develop a concrete strategy, the committee decided to invite representatives from the Rice Exporters Association for a detailed briefing in the next session. “We need an informed, industry-driven approach to protect our exports,” Chairman Hanif Khan stated.
Beyond rice exports, the committee examined broader trade and economic challenges. It urged insurance companies under the Commerce Ministry to improve their Corporate Social Responsibility (CSR) contributions and ensure the effective allocation of these funds for social welfare projects. The financial health of the Trading Corporation of Pakistan was also reviewed, with committee members pressing for swift resolution of its longstanding receivables and pending debts owed by various ministries and organisations. Addressing these liabilities, they argued, was crucial for TCP’s operational efficiency.
Concerns over defaults by sugar mills were also raised, with officials confirming that defaulters had been blacklisted to prevent further financial irregularities. The committee further discussed the government’s ambitious export target of $60 billion by 2029, with several members expressing skepticism about its feasibility. They called on the Commerce Ministry to present a detailed roadmap outlining actionable steps to achieve this goal in the next meeting.
The session was attended by MNAs Muhammad Mobeen Arif, Usama Ahmed Mela, Muhammad Ali Sarfaraz, Shaista Khan, Rana Atif, Muhammad Ahmed Chattha, Gul Asghar Khan, Muhammad Atif, Kiran Haider, and Khurshid Ahmed Junejo. Dr. Mirza Ikhtiar Baig, Asad Alam Niazi, and Sharmila Faruqui joined virtually. Senior officials from the Ministry of Commerce, NICL, PakRe, SLIC, and TDAP also participated in the discussions.
