LAHORE, April 12: Pakistan’s jute industry can earn foreign exchange through exports if the government provides incentives that are given to other export-oriented sectors.

Talking to reporters on Thursday Pakistan Jute Mills Association (PJMA) Chairman Humayun Mazhar said the industry had exported jute products to the tune of Rs850 million in a short span of three years and it had the potential to achieve the Rs5 billion export target over next three years if a level-playing field is provided to the jute millers by the government.

The jute industry contributed more than Rs4 billion to the GDP and Rs500 million in the form of direct and indirect taxes during 2005-06, besides providing employment to 20,000 workers. The industry is also saving the exchequer foreign exchange to the tune of $30 million annually in terms of import substitution of jute goods.

The industry claims that a significant amount of its capital is stuck up with the Central Board of Revenue in sales tax refund. Mr Mazhar further said that the import of jute machinery and spare parts from India was still not allowed.

The government had put the jute machinery on the negative list despite it’s not being manufactured locally and the industry is currently importing parts from China, the UK and elsewhere at a much higher price than from India.

Advocating for a level-playing field to compete with countries like India and Bangladesh in the export market, the PJMA chairman said the government should include the jute industry in the textile package and offer similar incentives it had extended to the textile industry.