Bangladesh seeks waiver on jute duty as exports to Pakistan plunge to $23 million in FY24
Bangladesh highlighted that jute and jute products account for 38% of all its exports to Pakistan, yet this trade has collapsed in recent years. Specifically, Bangladesh's export of jute and jute-based goods to Pakistan plummeted from $63 million in the 2021-22 fiscal year to just $23 million in the 2023-24 fiscal year.
Bangladesh has formally requested Pakistan to waive existing tariffs on jute and jute products to reverse a drastic decline in exports, a demand made during the ninth Joint Economic Commission (JEC) meeting between the two nations today (27 October).
The JEC meeting, held at the NEC conference room in Sher-e-Bangla Nagar was led by Finance Adviser Salehuddin Ahmed and Pakistan's Minister of State for Petroleum, Ali Pervaiz Malik.
Bangladesh highlighted that jute and jute products account for 38% of all its exports to Pakistan, yet this trade has collapsed in recent years. Specifically, Bangladesh's export of jute and jute-based goods to Pakistan plummeted from $63 million in the 2021-22 fiscal year to just $23 million in the 2023-24 fiscal year.
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To mitigate this, the country specifically sought duty-free market access for its jute and agricultural products.
While the total volume of trade between Bangladesh and Pakistan is currently less than $1 billion, both countries emphasised the need to jointly explore and capitalise on untapped potential in various sectors.
"This meeting is being seen as a highly significant and meaningful step that will give new momentum to bilateral relations between the two countries," said Adviser Salehuddin.
He added that special emphasis was placed on cooperation in trade and economic sectors, including agriculture, food processing, IT and pharmaceuticals.
Meanwhile, the Pakistani delegation noted that trade between the two countries is under $1 billion, highlighting a huge potential for growth.
The discussion covered a wide array of cooperation areas, including trade, investment, agriculture, energy, higher education, banking, tourism, sports, and climate change. Both sides expressed keen interest in improving connectivity, reducing costs by establishing direct air and naval links, and better utilising port and logistics infrastructure to boost bilateral and regional commerce.
In a step towards commercial collaboration, Pakistan reportedly agreed to encourage its textile companies to nominate Pakistani fabric suppliers for Bangladesh's ready-made garment sector.
The meeting concluded with the signing of a Memorandum of Understanding (MoU) between the Bangladesh Standards and Testing Institute (BSTI) and the Pakistan Halal Authority (PHA) to enhance cooperation in halal trade.
