The Green Gold Rush: How Bangladesh is Revolutionizing Jute Exports

Bangladesh's jute industry is set for a significant export boom, fueled by the global push for sustainable and eco-friendly products. As a leading exporter of jute yarn and a major player in the overall jute and jute goods market, Bangladesh holds a natural edge in this expanding green economy. To fully leverage this, strategically targeting new, high-value markets with diverse, eco-conscious products is key.

 

Recent Export Performance

The past five fiscal years reveal both fluctuations and strong growth, showcasing the industry's resilience and potential. While detailed year-on-year breakdowns for all jute categories and destinations vary, overall trends indicate robust performance:

FY 2019-2020: Jute and Jute Manufactures brought in approximately $882.35 million.

FY 2020-2021: A remarkable surge saw earnings hit $1161.48 million, breaking records and exceeding the $1 billion mark—a 31% increase from the previous year.

FY 2021-2022: Exports remained strong at $1127.63 million.

FY 2022-2023: Jute Yarn exports alone accounted for $412 million, solidifying Bangladesh's position as the world's largest exporter of Jute Yarn.

 

Current Top Export Markets

Historically, Turkey, China, and India have been the primary destinations for Bangladeshi jute products. Turkey is the largest importer of jute yarn, while India imports substantial quantities of raw jute, yarn, and carpet backing fabric. China remains a key buyer of jute yarn. These markets continue to be crucial, but the industry must look beyond them for long-term, sustainable expansion.

 

Opportunities for Export Growth in New Markets

The increasing global demand for eco-friendly products creates immense opportunities in regions actively seeking alternatives to synthetics.

European Union (EU): With strict regulations on single-use plastics and strong consumer demand for sustainable goods, the EU presents a vast, largely untapped market. Countries like Germany, France, Italy, Spain, the Netherlands, Belgium, and the UK are increasingly seeking biodegradable packaging, shopping bags, and home decor. Bangladesh's diverse jute products—from fashionable bags and accessories to innovative geotextiles for construction and agriculture—are perfectly suited for this demand. Preferential trade agreements between Bangladesh and the EU further enhance this opportunity.

North America (USA and Canada): Similar to the EU, North American consumers and businesses are becoming more environmentally conscious. The United States shows potential for growth, particularly for diversified jute products like handicrafts, home furnishings, and specialized fabrics. The "sustainable living" trend in these markets creates a niche for natural, biodegradable items.

Japan and Australia: These developed economies, known for their focus on high-quality and eco-friendly imports, offer significant potential. Japanese consumers appreciate natural fibers and craftsmanship, making diversified jute products such as floor coverings, fashion items, and unique home accessories appealing. Australia, with its strong environmental awareness, is another promising market for various jute applications, including geotextiles for land management.

 

To capture these new markets, Bangladesh must prioritize:

Product Diversification: Shifting focus from traditional bulk items to higher-value, finished goods.

Quality Assurance & Certification: Meeting international standards and obtaining certifications for eco-friendliness and ethical production.

Branding & Marketing: Effectively promoting jute's natural, sustainable, and versatile attributes.

Technological Upgrades: Investing in modern machinery to boost efficiency and product quality.

 

By strategically targeting these new markets and emphasizing the eco-friendly advantages of its "golden fiber," Bangladesh's jute industry can secure a thriving and prosperous future.

Labor Fury to Stock Jitters: Grameenphone's Billion-Taka Profit Share Showdown

Grameenphone, Bangladesh’s premier mobile network operator, is grappling with an escalating dispute with its former workforce, a situation that has grown increasingly contentious in recent months. The ongoing saga, marked by persistent protests and a tragic incident, is casting a shadow over the company’s public image and attracting investor scrutiny.

 

The heart of the contention lies in the former employees' demand for a 5% share of Grameenphone’s annual profits, as stipulated by the Bangladesh Labour Act. Protesters, organized under the "Laid-Off and Deprived Grameenphone Workers Unity Council," allege years of withheld payments and accumulated penalties. Based on Grameenphone's reported net profits from 2020 to 2024, the cumulative 5% share owed to workers is estimated to be a staggering BDT 8.54 billion. This substantial claim, alongside demands for job reinstatement and other lawful dues, forms the core of their intensified agitation.

 

Recent weeks have witnessed a surge in direct action, including blockades at Grameenphone's headquarters in Dhaka, disrupting daily operations and stranding current employees. A particularly somber development occurred in June 2025, with the passing of former employee Rajib Mahmud. Protesters have publicly linked his death to financial distress resulting from the unresolved benefits, branding it a "corporate killing" and fueling further public outcry.

 

While Grameenphone asserts its compliance with all legal obligations and highlights that many demands are subject to ongoing court cases, the persistent nature of these disputes has not gone unnoticed by the market. Although specific, direct correlations can be complex, such prolonged public disputes, particularly those involving significant financial claims and allegations of corporate negligence, can introduce investor uncertainty. This typically manifests as a downward pressure or limited upward momentum on stock prices, reflecting concerns over potential legal liabilities, reputational damage, and operational disruptions. Investors often seek stability, and ongoing labor conflicts, especially those with high financial stakes, inherently detract from perceived corporate stability. Grameenphone’s share price movements have seen fluctuations, and while a direct causal link to this specific dispute can be hard to isolate from broader market dynamics, persistent negative headlines and large financial claims inherently contribute to a cautious investment outlook.

Forensic Files: Probing the Network of Defaulting Elites Ravaging Bangladesh's Shariah Banks

 

The integrity of Bangladesh's Islamic banking sector hangs precariously, its promise of ethical, interest-free finance undermined by a deepening crisis of non-performing loans (NPLs) and acute liquidity shortages. This isn't merely a Shariah compliance issue; it's a fundamental failure of effective banking practices, exacerbated by the unchecked influence of powerful defaulters who have exploited these institutions.

At the heart of the crisis lies a systemic issue of massive loan defaults, often linked to influential groups like the S Alam Group, whose alleged irregularities have ballooned NPLs at key Islamic banks such as Islami Bank Bangladesh. This concentration of risk, coupled with questionable lending practices, has shattered balance sheets and eroded public confidence, triggering significant deposit withdrawals and a severe cash crunch across the sector. Several Islamic banks now face alarming equity deficits, with some seeing default rates reportedly soaring to extraordinary levels.

Rescuing these vital financial institutions demands a multi-pronged strategy rooted in sound banking principles and rigorous oversight:

Aggressive NPL Recovery and Resolution: The central bank and individual banks must adopt a far more proactive stance on loan recovery. This includes swift legal action against willful defaulters, establishing specialized asset management companies (AMCs) to acquire and resolve bad debts, and implementing strict, time-bound restructuring plans for viable defaulters, with clear penalties for non-compliance. Loopholes allowing politically connected individuals to evade repayment must be sealed.

Strengthening Corporate Governance and Accountability: The independence and oversight capacity of bank boards, especially Shariah Supervisory Boards, must be drastically enhanced. This means appointing truly independent directors with financial expertise, ensuring strict adherence to internal controls, and fostering a culture of zero tolerance for corruption and undue influence. Accountability must extend to senior management for any failures in risk management or ethical conduct.

Prudent Lending Practices and Risk Management: Banks must re-evaluate their credit assessment methodologies, moving away from concentrated lending to politically connected entities. Emphasis should be placed on diversified portfolios, robust collateral valuation, and real-time loan monitoring. The Bangladesh Bank must enforce stricter prudential regulations, including higher capital adequacy ratios for banks with excessive NPLs and tighter provisioning requirements.

Enhancing Regulatory Oversight and Intervention: The central bank needs stronger enforcement powers and a more agile framework for early detection and decisive intervention in struggling banks. This could involve mandatory recapitalization plans, forced mergers of weak institutions with stronger ones, or even temporary nationalization to protect depositors' interests and prevent systemic contagion. Developing a liquid, Shariah-compliant interbank money market will also be crucial for managing liquidity more effectively.

 

The current predicament is a stark warning that Shariah principles alone cannot safeguard financial institutions against poor governance and unchecked risk. Only through decisive, transparent, and robust banking reforms can Bangladesh's Islamic finance sector reclaim its integrity and ensure its sustainable contribution to the nation's economy.

Beyond the Pen-Down: Understanding the Power Struggle within Bangladesh's NBR

 

The ongoing crisis within Bangladesh's National Board of Revenue (NBR) has reached a critical juncture, with a prolonged pen-down strike by tax, VAT, and customs officials severely impacting the nation's economic vital signs. Government revenue collection has slowed to a trickle, and essential business operations, particularly in the import and export sectors, face unprecedented disruption.

At the Heart of the Unrest:

The root cause of this debilitating standoff lies in a controversial ordinance proposing the dismemberment of the NBR into two distinct entities: the Revenue Policy Division and the Revenue Management Division. While the government champions this structural overhaul as a necessary step to enhance efficiency, mitigate conflicts of interest, and broaden Bangladesh's notoriously narrow tax base, NBR officials stand in staunch opposition. Their primary concern revolves around a contentious clause within the ordinance that would permit officers from the general administration cadre to lead these new divisions, igniting fears of professional marginalization for seasoned revenue cadre officials.

Further exacerbating the already simmering tensions were recent "punitive" transfers of protesting officials, the denial of designated meeting spaces, and the conspicuous exclusion of certain officers from the very committee tasked with amending the contentious ordinance. This perceived mishandling of the reform process has undeniably eroded trust between the NBR leadership and its dedicated workforce.

Proposed Paths to Resolution:

The government, acting through the Chief Adviser's office and the finance ministry, firmly asserts that the NBR's restructuring is paramount for modernizing the national tax system and bolstering revenue collection, aligning Bangladesh with international best practices. While an earlier press release clarified that the NBR itself would not be dissolved, the finance ministry has more recently pledged to introduce necessary amendments to the "Revenue Policy and Revenue Management Ordinance 2025" by July 31, 2025. These amendments, they state, are specifically designed to safeguard the interests of BCS (tax) and BCS (customs and VAT) cadres, a move they hope will quell the ongoing protests.

Conversely, the protesting NBR officials, united under the banner of the NBR Reform Unity Council, are demanding the immediate repeal of the contentious ordinance. They further insist on the public disclosure of the NBR reform committee's final report and a firm commitment to an inclusive, consultative, and sustainable reform process. A more recent and significant demand is the immediate removal of the current NBR Chairman. The officials underscore that their opposition is not to reform itself, but rather a plea for transparency, fairness, and the rightful inclusion of experienced revenue officers in any restructured framework. The business community and economic analysts alike are vociferously urging for immediate dialogue to resolve this deepening crisis, highlighting its severe repercussions on both trade and the broader national economy.

Sri Lanka's Pharmaceutical Future: Bangladesh Collaboration and Investment Opportunities

Sri Lanka is actively pursuing investment from Bangladesh to bolster its domestic pharmaceutical manufacturing capabilities. This initiative stems from a significant imbalance between the nation's demand for medicines and its current production capacity, alongside a strategic push to strengthen economic ties within the region. At a recent high-level business forum in Colombo, Sri Lankan officials and industry representatives extended a strong invitation to Bangladeshi entrepreneurs, acknowledging Bangladesh's well-developed and globally competitive pharmaceutical sector.

 

Sri Lanka presently relies heavily on imported medications, with an estimated 85% of its pharmaceutical requirements fulfilled by international suppliers. In 2021, imports of medical and pharmaceutical products were valued at approximately USD 763 million. This substantial dependence on foreign sources exposes the island to vulnerabilities in global supply chains and currency fluctuations, a challenge acutely felt during its recent economic downturn, which led to crucial medicine shortages. Local production facilities currently meet only about 15-20% of the country's pharmaceutical needs, highlighting a considerable shortfall that must be urgently addressed to ensure healthcare security and reduce the national import bill.

 

In contrast, Bangladesh has emerged as a dominant force in pharmaceutical production. Specializing in generic drugs, Bangladeshi firms have largely satisfied their domestic market's demand and have also become significant exporters, including to nations like the United States. This success is largely attributable to robust government backing, a skilled labor force, and efficient, cost-effective manufacturing processes. Bangladesh already has a notable track record of exporting pharmaceuticals to Sri Lanka, indicating an established trading relationship in this industry.

 

The appeal for Bangladeshi investment aligns perfectly with Sri Lanka's long-term objective of increasing local drug production and achieving greater self-reliance in the pharmaceutical sector. The Sri Lankan government is actively promoting foreign direct investment in this area, providing various incentives and developing specialized export processing zones specifically for pharmaceuticals and medical devices. These zones are designed to offer the necessary infrastructure and regulatory support for establishing new manufacturing plants.

 

From a broader regional economic standpoint, this partnership offers mutual advantages. For Sri Lanka, investment from Bangladesh provides vital capital, technical expertise, and an opportunity to localize a crucial industry. For Bangladesh, it presents an expansion into a growing regional market, leveraging existing trade routes and further cementing its status as a pharmaceutical hub in South Asia. Both countries are also in discussions regarding a potential Free Trade Agreement (FTA). If implemented, an FTA would eliminate tariff barriers and significantly streamline trade and investment flows, thereby strengthening their economic partnership beyond just the pharmaceutical industry. This strategic collaboration has the potential to enhance Sri Lanka's healthcare resilience while opening new avenues for Bangladeshi industrial growth.