April 17, 2002	Wednesday	Safar 3, 142

ISLAMABAD, April 16: The jute industry - the third largest organized industry after textile and sugar - is fearing complete closure of units due to a proposed reduction in import duty below minimum slab on finished products and the Punjab government’s decision to use polypropylene bags for wheat packing.

Sources in the jute industry told Dawn that the government is considering to reduce import duty on finished jute products to 10 per cent instead of 25 per cent envisaged under the WTO rules.

Official sources confirmed that reduction in import duty on finished jute products was under consideration but said the minimum level would be decided in the trade policy 2002-03 after the federal budget. The proposal has come following the visit of Commerce Minister Abdul Razak Dawood to Bangladesh last month.

The Pakistan jute industry employs over 20,000 people and contributes over one billion to the national exchequer. “If this proposal is approved it will make the jute industry dead and thousands of people in backward areas will be unemployed”, said an industry source. “The government instead of supporting the local industry is trying to kill the industry”, he added.

The sources said that the food department of Punjab government has bought 16,000 bales of polypropylene bags for the packing and storage of wheat. The polypropylene bags were not suitable for the packing of wheat as not only were they hazardous for the wheat but they break when stored for a long period of time, these sources said.

The purchase would cause a huge loss to the national exchequer as not only the bags become useless the wheat will also get contaminated. When previously the Punjab food department used Polypropylene bags the flour mills refused to use the wheat.

These sources said that the local industry had all the potential to meet local bag demand and even go for its export provided the Punjab government placed timely orders for its requirement.