- Exported 489,000 tonnes of rice in December 2025 emerging as world’s third-largest exporter
- Delivered rare earth elements and critical minerals to United States strengthening economic engagement
As the world braces for ‘’metal wars’’ instead of ‘’tariff wars’’, the companies in Pakistan are also gearing up to change the dynamics of the export sector. Due to geopolitical changes across the world, the leading export brands of Pakistan are now changing from textile, footwear, furniture, surgical, leather and sports goods to electric transformers, Basmati rice, rare earthen minerals and more recently, fighter jets. This article aims to capture some recent developments in the electronics, food and minerals sectors of Pakistan.
Electronics
Pak Elektron Limited (PEL) is a major Pakistani electronics manufacturer that officially began exporting, specifically transformers, to the United States in March 2025. The company, which is part of the Saigol Group, is targeting a significant expansion into the US market to boost its international footprint. The first consignment of transformers departed from Pakistan on March 13, 2025. The initial focus is on power and distribution transformers. PEL is initially targeting private customers in the US while awaiting further certification to supply to government-owned entities. It benefits from shorter delivery times (9 months) compared to US manufacturers (2 years), and is leveraging a 35% duty advantage over Chinese imports. The company aims for $100 million in exports within two years, with 2025 targets around $10 million in transformer exports.
The Pakistan Business Council highlights the potential for “white-label” electronics production and increasing export complexity in the sector. In 2018, some Pakistani firms were placed on US export control lists; however, the recent developments in 2025 involve authorized and welcomed trade.
Basmati Rice
Pakistan’s rice exports recorded a strong rebound in December 2025, registering a 14 per cent month-on-month (MoM) increase compared to November, primarily driven by a more than 50 percent surge in Basmati shipments. The impressive performance enabled Pakistan to overtake Vietnam and emerge as the world’s third-largest rice exporter, behind India and Thailand, during the month. According to trade data, Pakistan exported 489,000 tonnes of rice in December 2025, excluding shipments to Iran, compared to Vietnam’s 387,000 tonnes. This marks Pakistan’s best monthly rice export performance, underscoring renewed momentum in the sector.
A notable development during December was Pakistan’s growing footprint in Central Asian markets. Exports to Kazakhstan exceeded 17,000 tonnes, including 10,300 tonnes of Basmati, while shipments to Uzbekistan stood at 10,382 tonnes. Industry experts say this reflects a structural shift, as Pakistan is now exporting directly to Central Asian states such as Kazakhstan, Uzbekistan, Azerbaijan, Turkmenistan, Tajikistan, and Kyrgyzstan. Previously, much of this trade moved indirectly through Afghanistan, but the closure of the Afghan border has prompted direct export routes, making Pakistan’s presence in the region more visible.
Despite the encouraging December figures, the rice export sector continues to face deep-rooted challenges. Structural, financial, marketing, and capacity-related weaknesses persist, with one of the most significant gaps being Pakistan’s negligible exports to Iraq — currently the world’s second-largest importer of Indian Basmati rice after Saudi Arabia. Similarly, Pakistan’s exports to Turkiye, a key transit hub for Iraq, Jordan, Syria, and parts of Eastern Europe, remain minimal. There is strong demand for Pakistani rice in Bangladesh, although higher freight costs have eroded competitiveness. Central Asian states are also emerging as promising markets since the start of Pakistan’s harvesting season in October 2025. Additionally, a 50 percent tariff imposed by the United States on Indian rice exports has begun to benefit Pakistan, with shipments to the US gradually picking up.
Another significant development is unfolding in Iran, where foreign exchange shortages have led the Iranian Central Bank to stop issuing subsidized foreign exchange for rice imports. Iranian traders are now importing rice using their own funds, a shift that has favored Pakistan due to geographic proximity. Pakistani exporters report a surge in Iranian demand, while Indian exporters have been adversely affected.
Minerals
Pakistan’s natural resources are estimated at around $6 trillion, making it one of the largest precious metals and rare earth minerals in the world. In October 2025, Pakistan’s Nova Minerals has successfully delivered its first batch of rare earth elements and critical minerals (antimony, copper concentrate, neodymium and praseodymium) to US Strategic Metals (USSM) in the United States. Last month, USSM and FWO signed a memorandum of understanding (MoU) worth $500 million to strengthen cooperation in the critical minerals sector, marking a step toward deeper economic and strategic engagement between the two countries. USSM, based in the US state of Missouri, is focused on producing and recycling critical minerals, which the US Department of Energy has defined as essential in a variety of technologies related to advanced manufacturing and energy production. Exim Bank of the United States has already approved $1.25 billion financing for co-operation in minerals extraction. Pakistan also intends to showcase its potential during the next Minerals Investment Forum 2026.