Consumption of paper is considered as one of the indices of the general progress of any country both in the cultural and industrial field. The per capita consumption of paper in developed countries varies from 200-300 Kg. Even in developing countries the figure is in the range of 10-40 Kg. This lower rate is mainly attributable to low literacy rate and neutralizing effect of the high rate of population growth.

The paper sector in Bangladesh was so far dominated by public sector. But with the liberal and pragmatic industrial policy pursued by the government quite a number of paper mills in the private sector have been set up in the country and many more are coming up.One of the important dimensions of the present Industrial Policy is establishing join-venture projects.

Bangladesh Chemical Industries Corporation has been playing catalytic role in promoting join-venture projects with private sector. This is an epoch making policy of the government and has already produced results in terms of setting up quite a number of projects. Magura Paper Mills Ltd is an outcome of such efforts.