Pakistan has withdrawn the 2.0 per cent additional customs duty (ACD) on jute imports from Bangladesh, a move expected to reinvigorate trade in the natural fibre long considered Bangladesh's "golden fibre".
The decision restores duty-free access for Bangladeshi jute in the Pakistani market and is likely to make the country's exports more competitive overnight.
Officials said the development, confirmed recently by Pakistan's High Commission in Dhaka through a recent diplomatic note, marks a positive shift in bilateral trade ties.
The Bangladesh foreign ministry has already requested the commerce ministry to take necessary action following the announcement.
The High Commission of Pakistan in Dhaka recently informed the Ministry of Foreign Affairs of Bangladesh through
"The previously imposed 2.0 per cent ACD on the zero per cent customs duty (CD) slab on jute imported from Bangladesh has been removed by the Pakistan government in the 2025-26 budget," says the diplomatic note.
Officials said the decision would streamline trade in the 'golden fibre' between the two South Asian neighbours, making Bangladeshi jute and jute products immediately more competitive in the Pakistani market.
Jute and jute goods have traditionally formed the backbone of Bangladesh's exports to Pakistan, accounting for a substantial share of the total trade volume.
However, exports of these products have declined in recent years, making the duty removal a timely boost, an official noted.
The elimination of the levy means that Bangladeshi jute, including raw jute and certain finished products, will now enter the Pakistani market at zero duty, a senior commerce ministry official said.
"The removal of the ACD is a clear win for Bangladesh's jute sector. It cuts the cost of exports instantly, making jute far more competitive," he added.
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