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Pakistan expresses interest in importing jute from Bangladesh: finance adviser

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  Published in Business and Finance on Monday, October 27th 2025 at 5:36 GMT by The Daily Star
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Pakistan Signals Strong Interest in Importing Jute from Bangladesh, Finance Adviser Announces

In a move that could reshape the regional dynamics of the jute trade, Pakistan’s finance adviser publicly confirmed the country’s keen interest in importing jute from Bangladesh. The statement, made during a recent press briefing in Dhaka, comes amid growing concerns over a domestic shortage of jute and rising prices that are pressuring Pakistan’s textile and packaging sectors.

Background: Why Jute Matters to Pakistan

Jute, the second‑most produced natural fiber in the world after cotton, is indispensable to Pakistan’s textile industry. The country has a long history of jute production, but the sector has suffered from dwindling yields, aging infrastructure, and competition from synthetic alternatives. In recent years, the domestic supply of jute has fallen short of the demand generated by the textile mills, agricultural exporters, and the burgeoning packaging market. According to the Pakistan Textile Mills Association, the shortfall has led to a 12 % increase in jute prices over the past year, which in turn has pushed up the cost of raw materials for apparel and food packaging manufacturers.

The finance adviser explained that importing jute from Bangladesh would help stabilize prices, secure a reliable supply chain, and support the country’s goal of becoming a self‑sufficient, export‑oriented economy. “Jute is a strategic raw material for many of our key industries. By strengthening our trade ties with Bangladesh, we can ensure a stable supply of high‑quality jute while also fostering greater economic cooperation between our two nations,” the adviser said.

Bangladesh: A Leading Jute Producer

Bangladesh is the world’s largest producer and exporter of jute, with an annual output of approximately 1.5 million tonnes. The country’s jute industry is largely driven by a network of small and medium‑sized enterprises (SMEs) that supply raw jute to global buyers. In 2023, Bangladesh’s jute exports totaled USD 1.1 billion, with the United Arab Emirates, India, and Pakistan among its major trading partners.

Bangladesh’s Ministry of Commerce highlighted that the country is looking to diversify its export portfolio and deepen ties with neighboring economies. “Our jute sector is well‑positioned to meet the rising demand from Pakistan, especially given the geographical proximity and the relatively low transportation costs,” a ministry spokesperson said. The ministry also noted that Bangladesh has been actively modernizing its jute processing facilities, aiming to improve quality and reduce environmental impact.

Negotiations in Progress

According to the finance adviser, discussions with Bangladeshi officials are underway to negotiate trade agreements that would allow Pakistan to import jute at competitive prices. While the exact terms of the potential deal remain confidential, analysts predict that the agreement could involve the establishment of a joint venture for jute processing, technology transfer, and the creation of a dedicated export corridor.

The adviser hinted at a memorandum of understanding (MoU) between the two countries’ ministries of commerce and trade, which would set the groundwork for a comprehensive trade strategy. “We are exploring all avenues to secure a stable jute supply chain, including direct imports, long‑term contracts, and the establishment of a joint processing facility that would benefit both our economies,” the adviser added.

Impact on the Regional Economy

The potential influx of Bangladeshi jute into Pakistan could have a ripple effect on the broader South Asian region. For Pakistan’s textile and packaging sectors, the availability of a reliable jute supply could help keep production costs stable and preserve competitiveness in global markets. For Bangladesh, the agreement could translate into a steady stream of export revenue, strengthening its foreign exchange reserves and supporting rural employment in jute‑producing areas.

Furthermore, the partnership could spur ancillary industries, such as jute bag manufacturing, home décor, and sustainable packaging solutions, thereby creating new jobs and boosting local economies on both sides of the border.

Looking Ahead

The finance adviser’s announcement has already generated excitement among industry stakeholders. Representatives from the Pakistan Textile Mills Association and the Bangladesh Jute Producers Association have scheduled a series of meetings over the next few weeks to iron out the details of the trade arrangement.

While the final agreement will depend on the outcome of these negotiations, the enthusiasm from both governments signals a new chapter in Pakistan–Bangladesh trade relations. By leveraging Bangladesh’s jute production capacity and Pakistan’s growing demand, the two nations could set a precedent for regional cooperation in the natural fiber sector, opening doors for further collaboration in other key commodities.

As the negotiations advance, both governments will likely keep a close eye on market dynamics, quality standards, and environmental regulations to ensure that the partnership delivers mutual benefits. If successful, this move could provide Pakistan with a stable jute supply, help curb rising input costs, and strengthen its position in the global textile and packaging markets—while offering Bangladesh a robust export avenue for its surplus jute.