Pakistan’s rice exports staged a sharp recovery in December 2025, rising 14 percent month on month, driven largely by a more than 50 percent surge in Basmati shipments, trade data show.
The rebound pushed Pakistan ahead of Vietnam to become the world’s third largest rice exporter for the month, trailing only India and Thailand. Total rice exports stood at 489,000 tonnes in December, excluding shipments to Iran, compared to Vietnam’s 387,000 tonnes. This marked Pakistan’s strongest monthly export performance to date and signalled renewed momentum in the sector. According to a report by Dawn News.
The United Arab Emirates remained the largest buyer of Pakistani rice, importing 74,897 tonnes, including 16,850 tonnes of Basmati. China followed closely with imports of 74,685 tonnes. Other major destinations included Tanzania with 62,900 tonnes, Kenya with 60,300 tonnes, Ivory Coast with 41,700 tonnes, Guinea Bissau with 31,850 tonnes, Malaysia with 23,930 tonnes, Madagascar with 17,800 tonnes, Kazakhstan with 17,050 tonnes, and Saudi Arabia with 16,032 tonnes, including 5,350 tonnes of Basmati. Combined exports to the European Union and the United Kingdom reached 21,100 tonnes, including 15,600 tonnes of Basmati, while Oman imported 5,770 tonnes, the United States 2,230 tonnes, and Canada 1,321 tonnes.
A key development during the month was Pakistan’s expanding presence in Central Asia. Exports to Kazakhstan crossed 17,000 tonnes, including 10,300 tonnes of Basmati, while shipments to Uzbekistan reached 10,382 tonnes. Industry sources say this reflects a structural shift, as exporters increasingly ship directly to Central Asian countries such as Kazakhstan, Uzbekistan, Azerbaijan, Turkmenistan, Tajikistan, and Kyrgyzstan. Previously, much of this trade moved via Afghanistan, but border closures have pushed exporters toward direct routes.
Despite the strong December showing, exporters caution that the sector continues to face deep rooted challenges. Structural, financial, marketing, and capacity constraints persist, with Pakistan’s exports to Iraq remaining negligible despite the country being the world’s second largest importer of Indian Basmati rice after Saudi Arabia. Exports to Turkiye, a major transit hub for Iraq, Jordan, Syria, and parts of Eastern Europe, also remain limited.
Prime Minister Shehbaz Sharif has recently instructed relevant authorities to develop a comprehensive strategy to strengthen rice exports and help narrow the trade deficit.
While government officials have cited competition from low priced Indian rice and phytosanitary rejections at borders as key reasons for weaker performance in recent periods, exporters argue that policy failures lie at the heart of the sector’s problems.
Rice sector analyst Hamid Malik points to intense global competition, higher global output particularly in India, subdued international demand, rising freight and logistics costs, inconsistent fiscal and monetary policies, irrational regulations, inflated domestic prices due to hoarding and undocumented money, and security related border closures as major impediments.
At the same time, Malik notes several emerging positives. Demand for Pakistani rice remains strong in Bangladesh, though higher freight costs have reduced competitiveness. Central Asian markets have shown growing appetite since the start of Pakistan’s harvesting season in October 2025.
Exporters also report early gains from a 50 percent tariff imposed by the United States on Indian rice, with shipments from Pakistan to the US gradually increasing. In addition, developments in Iran have created fresh opportunities, as foreign exchange shortages have forced Iranian importers to use their own funds instead of subsidised forex. Pakistani exporters say this shift has boosted demand from Iran due to Pakistan’s geographic proximity, while Indian exporters have faced setbacks.
