ISLAMABAD: Pakistan’s food exports rose to $5.75 billion during the first nine months of the current fiscal year (July to March), marking a 1.62% increase compared to $5.66 billion in the same period last year. The growth was primarily driven by a sharp rise in sugar and basmati rice exports.
Despite historic levels of domestic food inflation, Pakistan has witnessed 20 consecutive months of export growth. However, this surge in exports has coincided with supply-demand imbalances, pushing up prices for essential food items such as sugar, meat, and poultry in local markets.
In June 2024, the government approved the export of 150,000 tonnes of sugar under the condition that domestic retail prices remained stable. That target was greatly exceeded, with sugar exports reaching 757,779 tonnes by the end of March.
According to data from the Pakistan Bureau of Statistics (PBS), monthly sugar export volumes were:
- July: 39,158 tonnes
- August: 46,990 tonnes
- September: 51,452 tonnes
- October: 49,643 tonnes
- November: 166,283 tonnes
- December: 279,273 tonnes
- January: 124,793 tonnes
- February: 180 tonnes
- March: No reported exports
The current coalition government, led by the Pakistan Muslim League-Nawaz (PML-N), reauthorized sugar exports, which contributed to a sharp rise in domestic sugar prices — reaching Rs180 per kg — adding further pressure on inflation.
For comparison, in the previous fiscal year (FY23), Pakistan exported 212,896 tonnes of sugar over a three-month period.
Rice remained a major component of food exports. However, total rice export earnings fell by 5.91% to $2.76 billion during July–March FY25, down from $2.93 billion in the same period last year, mainly due to a drop in non-basmati rice exports.
Breaking it down:
- Basmati rice: Export volume increased by 21.78% to 663,980 tonnes; export value rose by 8.78% to $676.96 million
- Non-basmati rice: Export value dropped 9.87% to $2.08 billion, though quantity saw a marginal increase of 0.14% to 4.02 million tonnes
New export markets, such as Bangladesh, have opened for Pakistani rice, strengthening the sector’s potential. Pakistani rice continues to perform well in traditional markets like the European Union and the United Kingdom.
However, the export boom has come at a cost to local consumers. The average retail price of basmati rice has surged from Rs150 to Rs400 per kg over the past two years, making it less affordable for the domestic market.
Meat exports posted a modest growth of 0.99% in 9MFY25 compared to the previous year. The increase is attributed to the opening of new international markets, the entry of additional exporters, and regulatory approval for more slaughterhouses.
Domestically, meat prices have soared to record highs. Over the past three and a half years, the average price of buffalo meat has more than doubled — rising from Rs700 to Rs1,600 per kg. Chicken prices have also spiked significantly.
In contrast, vegetable exports saw a steep decline of 17.09% during July–March FY25, primarily due to reduced shipments of onions, potatoes, and tomatoes. Fruit exports also fell by 5.04% during the same period.
Fish and seafood exports registered only modest growth, increasing by 8.15% over the nine-month period.
