Bangladesh and Pakistan have restarted direct trade after a gap of more than five decades, marking a major step in improving economic ties. The first shipment, consisting of textiles and pharmaceuticals, was sent from Karachi to Chittagong on February 24, signaling a shift in trade relations between the two South Asian nations.
“This is a historic moment for both countries,” a Bangladeshi trade official said. Businesses from both sides expect the revival of direct trade to reduce costs and open new economic opportunities.
Trade between Bangladesh and Pakistan had been limited since the 1971 war that led to Bangladesh’s independence. Despite diplomatic relations being restored in 1974, direct trade routes remained largely inactive.
Previously, businesses relied on third-party countries like the United Arab Emirates or Singapore for indirect trade. This increased costs and slowed down the movement of goods.
With the new trade agreement, businesses will be able to import and export goods directly. The change is expected to benefit industries such as textiles, agriculture, and pharmaceuticals.
“Pakistan is a major cotton producer, and Bangladesh is a global leader in textiles,” an economist in Dhaka said. The trade route will help Bangladeshi manufacturers secure cheaper raw materials.
Bangladesh’s garment industry is the second-largest in the world, after China. Direct access to Pakistani cotton and textiles could strengthen its position in global markets.
Pakistan, in turn, will benefit from Bangladesh’s strong pharmaceutical sector. Bangladeshi drug manufacturers export to over 150 countries, offering competitive pricing and high-quality medicines.
The resumption of trade comes amid shifting economic conditions in South Asia. Both countries are facing inflation and external debt challenges, making cost-effective trade partnerships more important.
Business leaders from both nations have welcomed the move. They argue that stronger economic ties will create jobs and increase bilateral investment.
“The demand for our products in Bangladesh is huge,” a Pakistani textile exporter said. He expects trade volumes to grow rapidly in the coming months.
The trade restart is also expected to improve diplomatic relations. Political ties between the two nations have been strained for decades due to historical tensions.
Officials from both sides have emphasized that economic cooperation will benefit citizens. They believe trade can serve as a foundation for better regional stability.
South Asia has some of the lowest levels of intra-regional trade in the world. Many economic experts see this agreement as a step toward greater regional integration.
The two governments are working on reducing trade barriers, including tariffs and regulatory restrictions. Faster customs clearance and smoother payment mechanisms are also being discussed.
Pakistan has granted Bangladesh a Most Favored Nation (MFN) trade status. This means Bangladeshi products will receive lower tariffs and better market access.
Bangladesh has also expressed interest in expanding trade with other South Asian nations. It has already strengthened economic ties with India and Sri Lanka.
Despite positive developments, some challenges remain. Political uncertainties and trade disputes could slow down further progress.
Security concerns and cross-border tensions have also been issues in the past. Officials are working on measures to ensure smooth trade operations.
For now, businesses in both countries are optimistic about the opportunities ahead. The revival of direct trade marks a significant shift in economic diplomacy in South Asia.
The success of this trade route could encourage further economic cooperation in the region. The next few months will reveal whether the agreement leads to long-term benefits.
