Export of jute products begins

ISLAMABAD: Pakistan has started export of jute products to several countries including Middle East.

This was discussed in an internal strategy meeting, chaired by Advisor to the Prime Minister on Commerce and Investment Abdul Razak Dawood, to review the implementation of plans under the trade policy and other initiatives of the Ministry to promote geographical and product diversification to enhance the exports of Pakistan.

The meeting was held at Ministry of Commerce Wednesday and attended by senior officers of the Ministry.

Talking about the diversification of products, Razak Dawood said that export of jute from Pakistan was an inspiring success story as Pakistan had tapped into the markets of Egypt, Iraq, Malaysia, Turkey, Italy, Australia and New Zealand.

Dawood underscored that the Ministry of Commerce had a firm belief that reducing duties on raw materials reduced the anti-export bias and enhanced exports. He added that the export of jute products from Pakistan was a good example that "we can still compete, through importation of raw jute, with countries like India and Bangladesh, who produce jute in abundance."

Underlining the principles of diversification, the Advisor stated "export of jute products is a key element in our product diversification policy, by placing emphasis on non-traditional exports." He further noted that geographical diversification policies were also showing signs of success as jute products had found new global markets.

The Advisor was briefed that the duty on import of raw jute was brought down to zero in the fiscal budget 2019-20. In addition, the removal of Additional Customs Duties in the budget 2020-21 has made our jute industry more cost competitive. As a result, more orders are being received from the international market and Pakistan is looking at an unprecedented rise in the growth of jute manufacturing industry.

It was shared in the meeting that export sales of jute products went up by 148 percent in terms of weight, fetching more than double foreign exchange in 2019-20, as compared to 2018-19.

Wrapping up the meeting, Razak Dawood appreciated the efforts of the Ministry of Commerce as well as the exporters for the success of the trade policy of the Government. He noted that albeit the exports were small but important and those numbers would improve in all likelihood, while the jute manufacturing would continue to create more jobs for thousands of Pakistanis.

Copyright Business Recorder, 2020