EU Issues Over 100 Alerts to Pakistan for Substandard Rice Exports

Pakistan has received over 100 alerts from the European Union (EU) over substandard and fake rice exports, the National Assembly’s Standing Committee on Commerce was informed on Wednesday. MNA Sharmila Farooqi highlighted that the EU had imposed 72 trade barriers on Pakistani rice exports in 2024 due to poor quality. She didn’t appreciate the federal government for forming another National Food Safety Authority since existing regulatory failures remain unaddressed. The Commerce Secretary denied any formal EU warnings and claimed that concerns were raised over a single rice consignment from Punjab. Meanwhile, Commerce Ministry officials assured the committee of ongoing efforts with provincial authorities to enhance rice quality. The committee decided to summon the Rice Exporters Association for a detailed briefing in its next session. The committee was briefed that the Trading Corporation of Pakistan (TCP) reported outstanding dues of Rs. 305.25 billion of which Rs. 93.7 billion is the principal amount and Rs. 211.55 billion is accumulated interest. Some institutions have defaulted on payments since 2008. The National Fertilizer Marketing Companies and Utility Stores Corporation are among the biggest defaulters. The committee questioned the Ministry of Commerce’s plan to raise exports to $60 billion by 2029 and termed the whole idea unrealistic. MNA Rana Atif pointed out that Pakistan’s exports declined from $32 billion in 2022 to $28 billion in 2023. Other members criticized inconsistent trade policies, lack of value addition, and poor support for industries like textiles. Commerce officials defended the $60 billion target and attributed the positive forecast to increased international trade delegations and exhibitions. However, the committee members termed these efforts as ineffective without structural reforms. Lawmakers further urged the government to address longstanding issues and restrictions like electricity tariffs, taxes, and internet outages in the services sector.