Jute, once Pakistan’s most important crop now an embarrassing anecdote, might be caught up in a PSX pump-and-dump

In the middle of the state emblem of Pakistan, right there for the entire world to see, resides an embarrassing secret. Surrounded by a wreath of Jasmine, Pakistan’s national flower, is a quartered shield. In each of the four sections there is the image of a crop. 

From left to right these are cotton, wheat, tea, and jute. In 1951 when Pakistan ceased to be a dominion of the British Empire and became a republic in its own right, these were the most important crops grown in the entire country. Two of them, tea and jute, were grown in erstwhile East Pakistan. 

Today, Pakistan imports both of these products. Last year, imports of tea were worth close to a billion dollars. While the vast majority of this came from Kenya, there were also tea imports from Bangladesh close to $90 million. The import of jute is far less extravagant, costing Pakistan over $52 million in 2023, with nearly all of that coming from Bangladesh. While Pakistan is not a big exporter, jute is a major cash crop for Bangladesh, and a pillar of their textile industry. In 2024, the export of jute yarn, sacks, and products constituted nearly $900 million. In fact, before Bangladesh gained independence in 1971, jute was the single largest export oriented product in United Pakistan. 

Today, jute is little more than a shameful and shoddy remnant, and not just on the state emblem. After 1971, what remained of Pakistan still needed jute. Industries, packaging, and trade were all reliant on jute bags. As a result, a number of jute mills began popping up in West Pakistan in the late 70s. These mills would import jute fibre and turn them into bags before either exporting them or selling them on the local market. This industry still remains, although it has been a bit of a start-stop affair. 

Take, for example, Suhail Jute. The company was established in 1981 and has been involved in the production of jute related products. It was involved in manufacturing of twine, Hessian clothes and sacking cloth. From the beginning, the financial performance saw highs and lows as earnings flipped flopped between profits and losses.