Pakistan Food Exports Rebound as Rice Shipments Jump Nearly 25%

Pakistan’s food export sector has started the new fiscal year on a stronger footing, with exports of raw food products rising 7.68% during July-August FY2026-27, reversing the sharp decline recorded during the previous fiscal year.

Rice emerged as the main driver of the recovery, with overall rice exports increasing 24.68% year-on-year during the first two months of FY27.

At the same time, Pakistan’s food import bill grew by a relatively modest 2.23%, reaching approximately $1.503 billion, compared with $1.470 billion during the corresponding period a year earlier.

The latest trade figures provide an early indication of improvement in agricultural exports, although performance varied significantly across individual commodities.

Pakistan’s Food Exports Return to Growth

Raw-food exports increased 7.68% during July and August compared with the same two months last year.

The improvement is significant because Pakistan experienced a substantial decline in food exports during FY2025-26.

Raw-food exports fell 29.49% to $5.017 billion in FY26, compared with approximately $7.116 billion in FY25.

The positive performance at the beginning of FY27 therefore represents a reversal from last year’s downward trend, although two months of data are not enough to determine whether the recovery will continue throughout the fiscal year.

Rice has so far provided much of the momentum.

Rice Exports Jump 24.68%

Pakistan’s rice exports increased 24.68% year-on-year during July-August FY27.

Both basmati and non-basmati rice contributed to the improvement, although basmati recorded considerably stronger growth in export value.

Basmati Rice

The value of basmati rice exports increased approximately 53.03% compared with the same period last year.

Export volumes also rose 42.91%.

The fact that export value increased faster than volume suggests that the average export value achieved for basmati rice was also higher, although individual market prices and product mixes can vary.

Non-Basmati Rice

Non-basmati rice exports increased 9.99% in value.

Export quantity rose more strongly, increasing approximately 14.74% year-on-year.

Together, the two categories helped push Pakistan’s overall rice exports significantly higher during the first two months of FY27.

Government Extends Support for Rice Exporters

The government has also continued measures intended to support the rice-export industry.

The Ministry of Commerce extended the country’s rice export subsidy arrangement until September 30, 2026.

The Duty Drawback of Local Taxes and Levies (DLTL) rate applicable to non-basmati rice has also been increased.

These measures are intended to help Pakistani exporters remain competitive at a time when international rice markets are facing weaker demand.

However, longer-term export performance will ultimately depend on factors including global prices, crop production, exchange rates, freight costs, quality standards and demand from Pakistan’s major overseas markets.

Meat Exports Rise More Than 22%

Rice was not the only agricultural product recording growth.

Pakistan’s meat exports increased 22.53% during July-August compared with the corresponding period last year.

Fish and fish-product exports also increased, although at a much slower 3.23%.

Other categories recording increases included tobacco and spices.

Tobacco exports recorded particularly strong percentage growth of approximately 121%, while spice exports increased 8.29%.

Large percentage increases in smaller export categories, however, do not necessarily translate into the same dollar contribution as growth in major commodities such as rice.

Fruit and Vegetable Exports Fall Sharply

The overall improvement in food exports was not shared across the agricultural sector.

Pakistan’s vegetable exports fell approximately 27.28% during the first two months of FY27.

Fruit exports performed even more weakly, declining around 36.42%.

This divergence illustrates why the headline increase in food exports needs to be viewed commodity by commodity.

Strong rice and meat shipments helped compensate for weaker exports elsewhere.

For Pakistan to achieve broader agricultural-export growth, performance would need to improve across a wider range of products rather than relying heavily on a handful of major commodities.

Food Import Bill Reaches $1.503 Billion

While exports improved, Pakistan continued spending substantial amounts of foreign exchange on imported food.

The country’s food import bill reached approximately $1.503 billion during July-August FY27, compared with $1.470 billion during the same period last year.

That represents growth of just 2.23%.

The relatively small increase contrasts with the previous fiscal year.

Pakistan’s total food imports increased 11.66% during FY2025-26, reaching approximately $9.150 billion, compared with $8.195 billion in FY25.

Palm Oil Remains Pakistan’s Largest Food Import

Palm oil remained the largest individual component of Pakistan’s food import bill.

However, palm oil imports declined during the first two months of FY27.

Their value fell approximately 1.41% year-on-year, while the quantity imported decreased 13.40%.

The difference between the decline in import volume and import value indicates that movements in international prices and the composition of imports also affected the final bill.

Pakistan relies heavily on imported edible oil, making international palm-oil prices an important factor affecting the country’s food import costs.

Pulse Imports Drop Nearly 24%

Pakistan also recorded a significant decline in imports of pulses.

Pulse imports fell approximately 23.84% during July-August FY27 compared with the corresponding period last year.

Soybean oil imports recorded an even larger fall, with their value dropping about 99% year-on-year.

These declines helped offset higher spending in several other food categories.

Tea and Milk Imports Increase

Not every import category declined.

Pakistan’s tea imports increased approximately 28.74% during the period.

Imports of milk and related products rose approximately 20.41%.

The broader category covering other food products increased about 19.71%.

Higher spending in these categories partly offset reductions in palm oil, pulses and soybean oil.

Pakistan May Also Import Wheat

Pakistan’s food-import picture could change later in FY27 because the government has already approved plans to import wheat to address shortages in domestic production.

The eventual effect on the country’s import bill will depend on the quantity purchased, international wheat prices and the timing of imports.

Large-scale wheat purchases could increase food-import expenditure even if imports of several other commodities remain subdued.

That means the relatively small 2.23% increase recorded during July-August should not automatically be extrapolated across the entire fiscal year.

Sugar Exports Could Add to Export Earnings

Pakistan has also permitted the export of 200,000 metric tonnes of sugar during the current fiscal year.

If the approved quantity is shipped, sugar could provide another source of agricultural export earnings.

However, sugar exports remain closely linked to domestic production, stocks and local prices.

Authorities therefore have to balance potential foreign-exchange earnings against ensuring sufficient supplies for the domestic market.

Key Food Trade Numbers for July-August FY27

Why the Export Recovery Matters for Pakistan

Higher exports can benefit Pakistan by generating foreign exchange, supporting agricultural producers and reducing pressure on the country’s external accounts.

Food and agricultural products are particularly important because Pakistan already possesses substantial domestic production capacity in crops including rice.

But the latest figures also demonstrate the volatility of agricultural trade.

Raw-food exports fell almost 30% during FY26 before returning to positive growth during the first two months of FY27.

Maintaining the recovery will therefore depend on whether Pakistan can sustain production, remain competitive in international markets and diversify its agricultural exports.

What to Watch During the Rest of FY27

The July-August figures represent an encouraging start for food exports, but several factors could determine whether the improvement continues.

Rice export volumes and international prices will be particularly important because rice is currently driving much of the growth.

Wheat imports could meanwhile push the import bill higher later in the year.

Fruit and vegetable exports will also be worth watching after their steep declines during the first two months.

If rice maintains its momentum while weaker agricultural categories recover, Pakistan could record a broader improvement in food exports during FY27.

For now, the early trade figures show a clear contrast with the previous fiscal year: exports have returned to growth, while the increase in food imports has remained comparatively modest.