Bangladesh and Pakistan are deepening their diplomatic and economic engagement following years of limited contact, according to a recent report by Daily Waadaa. The renewed relationship involves expanded connectivity through Pakistan's national carrier-linked services, regular ship arrivals from Karachi to Chattogram, new scholarship programmes, and official as well as private-sector delegations traveling in both directions.
Despite this increased engagement, analysts have raised questions regarding the tangible economic benefits for Dhaka due to a persistent trade imbalance and unresolved historical issues. State Bank of Pakistan data indicates that Pakistan's exports to Bangladesh reached $67.2 million in the 2025–26 fiscal year, creating an approximately 11-to-1 trade ratio in favour of Pakistan, down slightly from $71.6 million in the previous year. Pakistan's exports largely consist of cotton and textile raw materials made more competitive by the depreciation of the Pakistani rupee. Meanwhile, Bangladesh has repeatedly sought tariff concessions for its jute and jute products. Although Pakistan imports nearly all of its raw jute and jute yarn from Bangladesh, it imposes significantly higher duties on value-added jute products, which industry representatives say has caused a sharp decline in Bangladesh's jute earnings.
Furthermore, the report points out that while Pakistan has discussed significantly raising its exports to Bangladesh, no comparable export targets have been set for Bangladeshi goods. Aside from traditional trade, the report suggests that institutional and technological cooperation could provide greater overall value. Bangladesh performs strongly on digital indicators, while Pakistan has advanced in linking financial institutions, digital wallets, and government services through shared platforms. Nevertheless, the report cautions that Dhaka must carefully weigh these potential advantages against market access barriers, domestic political sensitivities, and unresolved historical disputes that continue to influence ties between the two nations.
No comments yet. Be the first to comment.