Jute exports from Pakistan more than doubled to $6.8 million during the last fiscal year of 2019/20 after rationalisation of duty structure, officials said on Wednesday.
The officials said jute exports rose from $3.2 million in 2018/19. Now the orders have been booked till October 2020 and after abolishing of additional customs duty in the budget 2020/21 the exports of Jute products will further be increased in the current fiscal year, the told a meeting presided over by Adviser to the Prime Minister on Commerce Razak Dawood.
The meeting was convened to review the implementation of plans under the trade policy and other initiatives of the ministry to promote geographical and product diversification to enhance exports. The meeting was attended by senior officers of the commerce ministry.
Talking about the diversification of products, Dawood said export of Jute from Pakistan is an inspiring success story.
“We have tapped into the markets of Egypt, Iraq, Malaysia, Turkey, Italy, Australia and New Zealand,” he said. “The ministry of commerce has a firm belief that reducing duties on raw materials curbs the anti- export bias and enhances exports. Export of Jute products from Pakistan is 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 adviser said export of Jute products is a key element in product diversification policy placing emphasis on non-traditional exports. “Geographical diversification policies are also showing signs of success as our Jute products have found new global markets.”
The meeting was told 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 jute industry more cost competitive. As a result, more orders are being received from the international market and an unprecedented growth of Jute manufacturing industry is expected.
It was told export sales of Jute products went up 148% in terms of weight, fetching more than double foreign exchange in 2019/20 as compared to 2018-19.
Dawood appreciated the efforts of the ministry of commerce as well as the exporters for the success of the trade policy of the government.
“Albeit the exports are small but important and these numbers would improve in all likelihood, while the Jute manufacturing would continue to create more jobs for thousands of Pakistanis.”