Rice Industry In

Pakistan

Szent István Egyetem ÉTK, Budapest

Hungary

Aown Rizvi

In The Slides

Introduction

Pakistan’s Exports Profile Performance

Major Exports

Major Exports- Destinations

Rice Sector Varieties Of Rice

Contribution of Provinces

Production

Rice Consumption

Export Composition and Destination

SWOT Analysis

Problem

Suggested Strategy

CPEC (China-Pakistan Economic Corridor)

Conclusion

Pakistan has done fairly well economically since her independence (1947) more than six decades ago.

Pakistan's principal natural resources are arable land and water. About 25% of Pakistan's agriculture accounts for about 21% of GDP and employs about 43% of the labor force.

Pakistan continues its modest growth recovery. “Growth rate in 2017 is expected to rise to 4.8 percent” the World Bank says.

“Pakistan has made great progress in restoring macroeconomic stability but much more needs to be done to put Pakistan on a solid, economic growth footing,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

Introduction

Pakistan’s Exports

Profile

Pakistan’s Exports Performance

0

5

10

15

20

25

30

35

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16(Projected)

Exports (Billion US $ )

Pakistan’s Major Exports

Cotton, Textile and Clothing

Wheat

Vegetable, Fruit and Fish

Rice

Leather and Leather Products

Sports Goods

Surgical Instruments

According to FAOSTAT

Pakistan is one of the world's largest

producers of the following commodities

according to FAOSTAT, the statistical

arm of the Food and Agriculture

Organisation of The United Nations,

given here with the 2008 ranking

Name Global rank

Apricot 3rd

Buffalo Milk 2nd

Chickpea 3rd

Cotton, lint 4th

Cotton, Seed 3rd

Dates 5th

Mango 6th

Onion, dry 4th

Oranges 11th

Rice, paddy 11th

Sugarcane 5th

Tangerines 9th

Wheat 8rd

.

Pakistan’s Major Exports- Destinations

Percent

Rice Sector Pakistan is the 4th largest producer of rice

following China, India, and Indonesia

Rice is the major export product of Pakistan

following wheat, cotton.

Rice export earns about 13% of the country’s

foreign exchange making it the second most

important source of foreign exchange

Rice is cultivated over 10% of total cropped

area of Islamic republic of Pakistan.

It is contributing approximately 6.7 % in value addition of agriculture

and the contribution of rice in GDP is about 1.3-1.6% in total GDP.

It produces an average of 6 million tonnes and together with the rest of

the South Asia, the country is responsible for supplying 30% of the

world's paddy rice output.

Among the most famous varieties grown in Pakistan include

the Basmati, known for its flavour and quality. Pakistan is a major

producer of this variety.

FAO anticipates that rice exports by Pakistan in 2016 will exceed the

2015 level by 7 percent and reach 4.4 million tonnes. Cumulative rice

deliveries in the first seven months of 2016 are officially put at

2.5 million tonnes, up 13 percent from the same period in 2015

Super Kernel Basmati1

Super Kernal Parboiled2

1121 BASMATI RICE

1121 Par Boiled (Sella)

PK-386 Fragrant Rice

PK-386 Par Bolied (Sella)

IRRI-9 White Long Grain

IRRI-9 Par Boiled (Sella)

IRRI-6 Long Grain White

IRRI-6 Par Boiled(Sella)

Varieties Of Rice

Origin: Sindh Punjab

Color: Golden Yellow Golden Yellow White

http://reap.com.pk/download/index.asp

Most of these crops are grown in

the fertile Sindh and Punjab region

with millions of farmers relying on

rice cultivation as their major

source of employment.

Contribution of Provinces In

Rice Production

Punjab53%

Sindh 26%

Balochistan 12%

KPK9%

Percentage

Punjab Sindh Balochistan KPK

Production

0

2000000

4000000

6000000

8000000

10000000

12000000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Rice Production (Tonnes)

Rice Consumption

Rice consumption of all over the Pakistan is 2.8 Billion metric tons

and the export of the rice around 3.2 Billion Metric tons and total

production of the rice in Pakistan around 6 Billion Metric tons.

According to data compiled by the exporters, rice valuing $1.84

billion was exported in 2014-15 against shipments worth $1.89

billion in the previous year.

In 2013-14, the price of Pakistani basmati rice stood at $1,300 per

ton in the international market, but it dropped to $1,000 next year.

Export

Composition

Export Destination

http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/pak/show/1006/2014/

SWOT Analysis

Strengths

Strong comparative advantage due to

soil endowment, climate and irrigation

network.

Strong labor force for processing and

production.

Weaknesses

Post-harvest losses are high in Pakistan

up to 30%.

Lack of R&D culture and facilities in

industrial sector.

Opportunities

Increasing world population and

growing global prosperity fueling the

demand.

Enhancing the trade by providing

excellent quality of products with

acceptable standards.

Threats

Pakistan’s image as an exporter of low

quality, low prices of selected goods

and services, restricting the demand.

Law and order/security situation

discouraging the importers to visit

Pakistan or participate in our trade

exhibitions.

Problem

How to increase the foreign exchange earnings of Pakistan by increasing the volume and range of exporting high quality goods and services in the face of increasing competition in a rapidly globalizing world?

Strategy Increasing Exportable Surplus

Capacity Utilization

Capacity Expansion

Productivity Growth

Enforcing Quality Control

Encouraging Private Public Partnership

Reducing Transaction Costs

Attracting Foreign Investment

CPEC

The China–Pakistan Economic Corridor inaugurated at 6 Nov 2016, aimed to facilitate trade along an overland route that connects Kashgar and Gwadar through construction of network of highways, railways, and pipelines worth nearly $51 billion.

Officials predict that the project will result in the creation of upwards of 700,000 direct jobs between 2015–2030, and add 2% - 2.5% points to the country's annual economic growth.

The value of those projects would be equal to all foreign direct investment in Pakistan since 1970 and would be equivalent to 17% of Pakistan's 2015 gross domestic product.

https://www.youtube.com/watch?v=KZ5K_rF4AxE

Conclusion

Massive strides made by Pakistan in the field of Agriculture development during six decades of existence, which should be needed to be develop further more.

Pakistan will have to expand her production base, diversify it on need basis and craft an aggressive long term export strategy.

Pakistan also need to rationalize her economic policies, making concerted efforts to enhance our exports, finding new markets and encouraging value addition to our exportable items.

Thank You for

your Attention!!!