Malaysia Revises Tariffs on Pakistani Rice Imports

In a significant development for trade relations between Pakistan and Malaysia, the Malaysian government has agreed to revise its tariffs on Pakistani rice imports. This decision aims to align the tariffs with those applied to rice imports from other countries, thereby enhancing the competitiveness of Pakistani rice in the Malaysian market.

The agreement comes after fruitful discussions between Pakistani Prime Minister Shehbaz Sharif and Malaysian Prime Minister Anwar Ibrahim. During these talks, which took place following PM Ibrahim's visit to Pakistan in October, both leaders addressed various trade issues that had been affecting the import of Pakistani rice. The Prime Minister’s Office (PMO) in Pakistan expressed satisfaction with the resolution of these trade challenges, although specific details regarding the issues resolved were not disclosed.

During his visit, PM Ibrahim had shown a keen interest in importing 100,000 tonnes of Pakistani rice, along with meat. However, Pakistani officials had raised concerns about the higher tariffs that made their rice less competitive compared to Indian rice in Malaysia. For instance, at that time, the price for 5% broken white rice from India was around $444-448 per tonne, while similar rice from Pakistan was priced higher at $463-467 per tonne. This price disparity was a significant hurdle for Pakistani exporters, who were also noted to be demanding higher prices, further widening the competitiveness gap.

The PMO statement highlighted that PM Shehbaz is pleased with the strengthening of bilateral relations and reaffirmed Pakistan’s commitment to cooperation in areas of mutual interest. Both leaders have agreed to enhance ties across key sectors, which is a positive step towards fostering a more robust economic partnership.

Looking ahead, PM Shehbaz, accompanied by Deputy Prime Minister and Foreign Minister Ishaq Dar, is expected to visit Kuala Lumpur early next year. This visit is anticipated to further solidify the trade relationship and explore new avenues for collaboration between the two nations.

The revision of tariffs on Pakistani rice by Malaysia is a promising development that could lead to increased exports and stronger economic ties between the two countries. As both nations work towards enhancing their trade relations, it is essential for Pakistani exporters to remain competitive and adapt to market demands. This agreement not only benefits the rice industry but also sets a precedent for future trade negotiations, highlighting the importance of dialogue and cooperation in international trade.