Jute exports to Pakistan more likely to increase

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Pakistan may be the second largest industry for raw jute export from Bangladesh
Amid the downward trend in raw jute export to Pakistan, Bangladeshi exporters see new potential as the Pakistan government made a decision to increase import of raw jute for marketing its exports of jute-based processed products.

Pakistan may be the second major importer of raw jute after India with 22.38% share of Bangladesh’s total exports of $130 million as of the go on fiscal year, while India imported $46.89 million.

The Pakistan government is rolling out a strategy to inspire import of raw jute, generally from Bangladesh, to promote exports of jute-based prepared products from the united states, reports The Dawn.

Bangladesh and India will be the world’s two leading major jute developing states. The Pakistan federal government has got suspended trade relations with India. Subsequently, the preferred vacation spot for the import of zero-duty jute is Bangladesh.

Currently, Pakistan has already been importing jute from Bangladesh at a lower rate beneath the free-trade agreement

According to Export Promotion Bureau (EPB) info, Bangladesh’s exports of raw jute to Pakistan declined by 11.15% to $29.10 million in FY2019-20, that was $32.75 million in the previous fiscal year. 

However,  overall export to Pakistan fell by 10.40% to $50.53 million in FY2019-20 against $56.40 million in the FY2018-19. Of the full total exports to Pakistan, 57.58% originated from raw jute export.

Jute exporters opined that the increased imports of raw jute from Bangladesh will be best for the jute growers and also the exporters as the united states has surplus raw jute because of the government closing downwards the state-run jute mills which would in any other case use the raw materials to produce jute products.

“Pakistan industry is a superb prospect for us because they usually do not grow jute. We already are exporting raw jute there and the declaration of importing extra is good news for all of us,” Salim Reza, vice chairman of Bangladesh Jute Exporters' Association, informed Dhaka Tribune. 

While key export industries are struggling to survive the economical hit of the brand new virus, jute and jute goods will be the exception as it had an 8.10% rise to $882.35 million in FY2019-20.

In the new concluded 2019-20 fiscal year, Bangladesh merchandise exports declined by 16.93%, from $40.53 billion in FY2018-19 to $33.67 billion in FY2019-20, according to EPB data.

Of the quantity, raw jute earned $130 million, up 15.48% from last year’s export receipts. Jute yarn and twine, the most significant contributor to the sector, fetched $564.26 million, showing a 10.12% growth compared to the previous fiscal year.

Alternatively, jute sacks and bags observed a 28.58% surge to $106.54 million in the last fiscal year. 
Source: https://www.dhakatribune.com

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