Bangladesh is currently in a precarious position due to rising import prices and dwindling foreign currency reserves. Amidst the uncertainties, the paper and paper products industry has emerged as a key source of foreign earnings in recent years, with the sector recording an 85% year-on- year growth during July-August of FY 2023- 24 relative to FY 2022-23.
The market size of paper and paper-allied products is estimated to be BDT 5,000 crore, with the industry comprising diverse paper products, including writing and printing papers, offset papers, newsprints, tissues, and packaging papers. The industry was largely boosted back in 2016, owing to the government’s cash incentive of 10% on receipts. Till now, Bangladesh has been exporting its paper-allied products to over 50 nations, including the United States and countries from Europe, the Middle East, and Africa.
As the world edges closer towards a paperless economy, the demand for writing and printing paper is expected to experience a sharp downfall, while the heavy reliance on paper pulp imports and its scarcity will trigger an increase in the prices of paper products. However, these challenges have been addressed adequately, as paper mills have invested in waste paper processing to reduce reliance on imported raw materials while prioritising product diversification to cater to foreign demands. An excellent opportunity awaits Bangladesh, as the decreased paper manufacturing of China, India and Japan can propel the paper industry to new heights and establish itself as one of the paper manufacturing hubs in the world.
Md. Shah Jalal
Editor
IDLC Monthly Business Review
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