Business

Rice export rebate scheme revised

Published

1 hour ago

February 19, 2026

ISLAMABAD: The Ministry of Commerce has further amended a rebate scheme on local taxes and levies to address concerns of larger rice exporters and make it more competitive on the international market.

A notification released on Wednesday fixed specific rates under the Duty and Taxes Remission for Export (DLTL) scheme for various rice brands. The scheme will come into effect retrospectively from Jan 23.

The government has allocated approximately Rs15 billion for the subsidy scheme. According to the notification, the commerce ministry has removed the ceiling cap price of $1,275 per tonne FOB.

As a result of this decision, according to sources, rice exporters will receive 9pc of the FOB value of $750 or above. This will encourage over-invoicing by Basmati exporters with offices abroad in Saudi Arabia, the United Arab Emirates, the US, the EU, and the UK.

Govt removes $1,275 per tonne price cap, allocates Rs15bn subsidy to boost competitiveness

Contrary to this, Indian exporters are currently offering Basmati rice at prices below $300 per tonne, with a price range of $900 to $975 per tonne to foreign importers.

There are apprehensions that the DLTL incentive is being misused by Basmati exporters and that domestic prices have already inflated. “Our growers have already sold their Basmati paddy at a price range of Rs5,500 to Rs6,000 per 40 kg,” the sources further said.

According to the same sources, hoarders are demanding Rs6,400 per 40kg.

Based on domestic paddy prices and a 9pc discount to DLTL, sources estimate the net export price of Pakistani Basmati rice at $1,200 per tonne. “Who will buy from us if Indian exporters are already supplying Basmati at $900 per tonne?” according to sources.

It has been pointed out that almost all of the top 50 rice exporters have their entities at various destinations, including KSA, UAE, USA, Canada, Kenya, Rwanda and other African destinations. “Now they will re-route their exports of Basmati and coarse rice through their overseas entities at a higher invoiced value to grab the maximum of DLTL incentives”, the sources further claimed.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in a letter dated Feb 16 to Commerce Minister Jam Kamal Khan, said the imposition of an export price cap could exclude a large number of genuine exporters from the DLTL facility and adversely affect competitiveness and foreign exchange earnings.

FPCCI President Atif Ikram Sheikh stated that the rice sector operates in a highly competitive international market with fluctuating prices, quality variations and destination-specific dynamics. He cautioned that a rigid cap does not reflect market realities and may disproportionately affect small and medium exporters.

Published in Dawn, February 19th, 2026

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Business

Power firms seek Rs1.78 more for January

Published

17 minutes ago

February 19, 2026

hussainbinnoman3@gmail.com

ISLAMABAD: After a period of relative stability, power companies have sought additional fuel cost charges of over Rs1.78 per unit from consumers across the country in March bills, as demand appeared to pick up and power generators returned to furnace oil.

The Central Power Purchasing Agency (CPPA) demanded a higher fuel cost on account of power consumed in January, even though almost 60 per cent of the power was generated from domestic, cheaper sources. Electricity consumption was reported to be around 12pc higher than the same month last year and 8pc higher than December 2025.

Once approved, the power companies would charge an additional amount of about Rs16bn to consumers of all the power companies, including ex-Wapda Distribution Companies (Discos) and K-Electric, in the billing month of March. The National Electric Power Regulatory Authority (Nepra) has called a public hearing on February 26 to examine the request for fuel cost adjustment (FCA).

The CPPA, which filed the petition for a higher FCA for January consumption, said the power consumption was around 12.1pc higher than the same month of the previous year and about 8pc higher than the previous month, December 2025. The power companies have claimed an average fuel cost of Rs12.18 per unit for January 2026, compared to Rs11.03 per unit of the same month of the previous year and almost Rs2.56 per unit higher than Rs9.62 per unit in December 2025.

CPPA demands higher fuel charges citing 12pc increase in demand

The CPPA reported that 8,762 billion units (gigawatt hours) of electricity were delivered to Discos in January.

The power companies have claimed that the average fuel cost amounted to Rs12.18 per unit in January, against a pre-approved reference fuel cost of Rs10.395 per unit. There is a need for an additional FCA of about Rs1.78 per unit.

The CPPA said about 9,140GWh of electricity was generated in January at an estimated fuel expenditure of Rs106.4bn (Rs11.64 per unit), of which 8,762GWh of energy was delivered to Discos for Rs106.7bn (Rs12.18 per unit), leading to a higher fuel cost over what was already charged to consumers in December bills. Regasified Liquefied Natural Gas (RLNG)- based power generation accounted for the largest share of the grid’s fuel, with almost 22pc.

This was followed by nuclear power with its 17.5pc share. Traditional hydropower generation dipped to just 8pc in the wake of the annual canal closure for maintenance. Third position was secured by imported coal, with a 17.28pc share, followed by local coal with a 15.4pc share.

The share of local gas-based generation stood at 12pc in January, up from 11pc in December. Furnace oil-based generation revived to 3pc, although the fuel has been officially phased out.

Furnace oil-based generation was the most expensive at Rs33.55 per unit, followed by Rs20 per unit from RLNG, Rs13.5 per unit from imported coal, Rs12.74 per unit from local gas, and Rs11.63 per unit from local coal. There was no power generation from high-speed diesel.

The nuclear fuel cost amounted to Rs2.23 per unit in January. The three renewable energy sources — wind, bagasse and solar — together contributed a 4.55pc share to the grid. Wind and solar have no fuel costs, while bagasse-based plants had a fuel cost of Rs10.39 per unit, with just 1.11pc contribution to the grid. Electricity imports from Iran accounted for 0.38pc of the total, with a fuel cost of Rs22.06 per unit.

Published in Dawn, February 19th, 2026

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Business

Foreign direct investment plunges 41pc to $981 million

Published

28 minutes ago

February 19, 2026

hussainbinnoman3@gmail.com

KARACHI: Foreign direct investment (FDI) plunged year-on-year by 41 per cent in the first seven months of 2025-26.

Data issued by the State Bank on Wednesday showed that the confidence of foreign investors further declined compared to the previous year, as their investment during July-January FY26 fell to $981 million from $1.660 billion in the same period of the previous fiscal year.

Experts believe foreign investment will remain under pressure, as the regional situation is not conducive to foreign investors, and the country is also facing terrorism.

The government is struggling to attract foreign investors but failed to achieve any positive results. The State Bank data showed that the highest FDI inflows came from China at $495.5m; however, this was lower than last year’s $857m.

Other significant inflows were from Hong Kong ($188.4m), the UAE ($126m), and Switzerland ($124m).

The inflow of FDI improved in January, reaching $173.3m, but the largest inflow this month was from China, contributing $73m.

However, the largest outflow was to Norway, with disinvestment totalling $365m during the July-January period.

Published in Dawn, February 19th, 2026

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