DHAKA: Amid the downward trend in raw jute export to Pakistan, Bangladeshi exporters see new potential as the Pakistan government decided to increase import of raw jute for promoting it.
exports of jute-based processed products, foreign media reported.
Pakistan is the second largest importer of raw jute after India with 22.38% share of Bangladesh’s total exports of $130 million as of the last fiscal year, while India imported $46.89 million.
The Pakistan government has developed a strategy to encourage import of raw jute, mainly from Bangladesh, to promote exports of jute-based processed products from the country, reports The Dawn.
Bangladesh and India are the world’s two leading major jute growing states. The Pakistan government has suspended trade relations with India. Therefore, the preferred destination for the import of zero-duty jute is Bangladesh.
Currently, Pakistan is already importing jute from Bangladesh at a reduced rate under the free-trade agreement
According to Export Promotion Bureau (EPB) data, Bangladesh’s exports of raw jute to Pakistan declined by 11.15% to $29.10 million in FY2019-20, which was $32.75 million in the previous fiscal year.
