Pakistani exporters to move government against Qatar’s India-only rice tender

In this file photo, a vendor arranges different types of rice, with their prices displayed, at his shop in a wholesale market in Karachi, Pakistan April 2, 2019. (REUTERS)
Updated 27 October 2019
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Pakistani exporters to move government against Qatar’s India-only rice tender

  • On Thursday, Qatar government announced an India-specific tender for import of 48,000 metric tons of basmati rice
  • Pakistani traders say both countries have basmati rice, country-specific tenders should not be floated

KARACHI: Pakistani rice exporters said on Saturday they would send a letter to Qatar on Monday through the ministry of commerce and the Trade Development Authority to complain about an India-specific basmati rice import tender, which local traders have called a discriminatory move by the Qatari government.
Earlier this year, Qatar lifted a ban, imposed since 2011-12, on the import of rice from Pakistan, thus allowing Islamabad to export 4,000 metric tons or 100,000 bags of basmati rice to Doha. The decision came after a visit to the country by Pakistani Prime Minister Imran Khan. A tender was subsequently won by Pakistan’s Chappal traders, whose shipment is expected in Qatar by December 2019.
On Thursday, however, the Qatar government announced a new tender for import of 48,000 metric tons of basmati rice but allowed only Indian suppliers to participate.
“Definitely our association will send a letter to the Qatar government in which we will write to them that this variety [basmati rice] is available both in Pakistan and India; therefore origin specific tenders cannot be floated,” Muhammad Raza, senior vice chairman at the Rice Exporters Association of Pakistan (REAP) told Arab News on Saturday. “The letter will be sent through the ministry of commerce and the Trade Development Authority of Pakistan to the Qatari government on Monday.”
“As the previous tender was Pakistan-specific, perhaps they have gone for an Indian-specific tender this time and allocated more quantity to India,” Raza added. “Qatar’s procurement agency will be requested that in future the tender for this variety should not be kept country-origin specific, allowing both countries [India and Pakistan] to supply as per their capacity.”
Neither Pakistan’s minister for commerce, nor a representative of the Trade Development Authority, could be reached for comment.
Pakistan’s exporters say the country will lose rice exports worth $57.6 million due to the exclusion of Pakistan from Qatar’s latest tender.
“Pakistan’s name should have been in the tender issued by the Qatar government for supply of 48,000 MT rice along with India,” Rafique Suleman, convener of the Federation of Pakistan Chambers of Commerce and Industry, told Arab News.
Qatar’s annual rice import market is about 200,000 metric tons, in which Pakistan’s share gradually declined from 125,000 to 20,000-25000 tons in 2011-12. Since this time, only private sector rice firms from Qatar have continued imports from Pakistan.
The 2011-12 ban was imposed on Pakistan by the CTC, the government of Qatar’s procurement arm, for what it called the supply of substandard commodities. Since the lifting of the ban, Pakistan is expecting to export rice worth $40-50 million, but Qatar has appointed a third party to ensure quality.


Pakistan set to auction loss-making national airline in live broadcast tomorrow

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Pakistan set to auction loss-making national airline in live broadcast tomorrow

  • This is Pakistan’s third attempt at PIA privatization, following a failed 2024 auction that got only one bid
  • Islamabad plans to retain PIA name and branding, expand fleet and route network under the new business plan

ISLAMABAD: Pakistan is set to broadcast live the auction of its loss-making national airline tomorrow, Pakistani state media reported on Monday, a move authorities say is aimed at ensuring transparency.

Pakistan will privatize 75 percent of the carrier, the Pakistan International Airlines (PIA), while retaining its name and branding, according to Prime Minister Shehbaz Sharif’s Office.

The decision marks Islamabad’s most aggressive push in decades to reform the debt-ridden airline, which has accumulated more than $2.5 billion in losses and become a major burden on the national budget.

Pakistan prequalified in July four consortiums for the sale, but Fauji Fertilizer Company Ltd. withdrew later. Lucky Cement and Arif Habib Corporation lead two other consortiums, while private airline Airblue is the third contender.

“The government plans a full divestment of the airline, beginning with the auction of a 75 percent stake on Tuesday, with the remaining 25 percent to be offered later at a 12 percent premium,” Pakistan TV Digital reported quoted Privatization Commission Chairman Muhammad Ali as saying.

Once regarded as one of Asia’s premier carriers, PIA has struggled with chronic mismanagement, political interference, overstaffing, mounting debt and operational issues that led to a 2020 ban on flights to the European Union, United Kingdom and the United States (US) after a pilot licensing scandal. Privatizing the airline is also a key requirement under Pakistan’s $7 billion International Monetary Fund (IMF) program agreed last year.

This is Pakistan’s third attempt at PIA privatization, following a failed 2024 auction that received only one bid of $35 million that was far below the government’s nearly $300 million asking price, according to Privatization Commission records.

The government is targeting $302 million in privatization proceeds this year, though Ali said restoring PIA operations remains a priority over maximizing short-term revenue. Islamabad plans to expand PIA fleet and route network under the new business plan.

Ali last month said the government had aimed to finalize the airline’s sale by October 2025 but the target was missed due to delays in restructuring and valuation.

The PIA sale is seen as a key test of Pakistan’s broader economic reform agenda as the government seeks to cut losses from state-owned enterprises and revive investor confidence.

Islamabad has launched a five-year privatization plan covering 24 state entities between 2024 and 2029, including the Roosevelt Hotel in New York, three banks, power distribution companies, and the Postal Life Insurance Company, according to the Privatization Commission.