ISLAMABAD: Pakistani rice traders on Friday warned the government of a possible reduction in their exports to $2 billion, against the ambitious $5 billion target, blaming the new tax regime expected to make them pay a larger share of their earnings than in the past.
The country’s rice exports to Saudi Arabia, the United Arab Emirates, China, Malaysia and other countries reached $3.9 billion in the last fiscal year, a noticeable improvement compared to the previous year’s $2.1 billion, reflecting an upward trajectory.
For the current fiscal year, Pakistani rice traders have been eyeing $5 billion. However, they say this might not happen due to the government’s decision to replace the Final Tax Regime with the Hybrid Tax Regime, which would double the tax rates and force exporters to file returns each month.
The Final Tax Regime refers to a system where specific sources of income, such as dividends, have final tax deductions made at the source, meaning no further tax is payable. In contrast, the Hybrid Tax Regime applies to businesses or individuals with multiple income streams, combining final taxed income with additional taxable income, requiring more meticulous filing of returns and higher overall tax rates.
“This new tax regime will leave us uncompetitive in the international market,” Chela Ram Kewlani, Chairman Rice Exporters Association of Pakistan, told Arab News. “This will automatically result in a drop in our rice exports to $2 billion as we have already been doing business at record high markup rates and electricity costs.”
He said the new tax regime would open the door for the Federal Board of Revenue (FBR), the country’s tax collection body, to audit their business, resulting in “corruption and harassment” of rice exporters.
“There is a clear contradiction in the government’s statements and actions,” he said. “They want to boost the exports, but at the same time they want to burden the sector with heavy taxes.”
Kewlani said, besides the new tax regime, the government would levy 10 percent super tax if the exports of a trader went beyond Rs4 billion ($14.4 million).
He informed the exporters held a meeting with Federal Minister for Finance Muhammad Aurangzeb last week to discuss the issue, though it did not yield their desired results.
“You are aware of the economic situation, so the government has no option but to levy additional taxes on the rice exports,” he said while quoting the finance minister.
Muhammad Jawed Hanif, Chairman of the National Assembly’s Standing Committee on Commerce, said he was aware of the challenges posed by additional taxes, adding the committee would discuss the matter in its next meeting.
“We have a meeting on July 24 wherein we will discuss these rice export issues,” he told Arab News.
“All issues related to exports will be on my priority list as the country badly needs foreign exchange through increased exports of our products,” he added.
Pakistani rice traders warn government of drop in exports due to additional taxes
https://arab.news/6bzf2
Pakistani rice traders warn government of drop in exports due to additional taxes
- Local traders of the commodity set $5 billion of export target before government introduced new tax regime
- National Assembly Standing Committee on Commerce will take up the issue in its forthcoming meeting next week
Bangladesh flag carrier to launch Dhaka–Karachi flights this month after over 13 years
- Inaugural flight scheduled to depart from Dhaka to Karachi on Jan, 29, says Biman Bangladesh Airlines spokesperson
- Airline will operate two weekly flights from the Bangladeshi capital to Pakistan’s commercial hub on Thursdays and Saturdays
ISLAMABAD: Bangladesh’s flag carrier Biman Bangladesh Airlines has announced it will launch direct passenger flights between the cities of Dhaka and Karachi after over 13 years later this month, the airline said on Thursday, as both nations improve historically bitter ties.
Biman will operate two weekly flights to Karachi, Pakistan’s largest city by population and its commercial hub, on Thursdays and Saturdays, the airline’s spokesperson Boshra Islam told Arab News.
“Biman is launching its Karachi operations on Thursday, Jan. 29, 2026,” she said, adding that the inaugural flight is scheduled to depart from Dhaka at 8:00 p.m. local time and arrive in Karachi at 11:00 p.m. Pakistan time.
Pakistan has granted Biman initial permission to operate the route for three months until Mar. 26, according to a spokesperson for the Pakistan Civil Aviation Authority. The approval would be extended later, the official said.
The restoration of the airline’s flights to Pakistan marks a significant step in restoring direct air connectivity between the two South Asian nations.
Pakistan and Bangladesh were part of the same country until 1971, when the latter split from the former after a bloody civil war and became the independent state of Bangladesh.
Ties between both have improved significantly since 2024, after the fall of former Bangladesh PM Sheikh Hasina’s government due to a student-led uprising. Hasina was widely viewed in Pakistan as being close to India and openly critical of Islamabad.
The resumption of passenger flights comes as aviation and trade links between the two countries begin to recover after decades of limited engagement.
In November last year, state-owned Pakistan International Airlines (PIA) said it had signed a cargo agreement with Biman Bangladesh Airlines aimed at streamlining air freight operations and boosting bilateral trade.
A PIA spokesperson said the airlines had entered into a Cargo Interline Special Agreement as part of PIA’s strategy to expand its cargo business and offer more competitive services to customers.
Pakistan has stepped up efforts to rebuild relations with Bangladesh as ties between Dhaka and New Delhi remain strained over India’s decision to grant asylum to Hasina after she fled the country.
In February last year, a cargo vessel sailed directly from Pakistan to Bangladesh for the first time in decades and successfully unloaded its containers, port officials said.
The two countries signed six agreements in August 2025 covering areas such as visa exemptions for diplomatic and official passport holders, trade cooperation, media collaboration and cultural exchanges, officials said.
