Pakistan-Bangladesh Trade Resumes After 52 Years

Pakistan and Bangladesh have resumed direct government-to-government trade for the first time since 1971, marking a significant milestone in their bilateral relations. The recent trade agreement involves Bangladesh importing 50,000 tonnes of rice from Pakistan through the Trading Corporation of Pakistan (TCP), facilitated by the Pakistan National Shipping Corporation. This development follows the ousting of former Bangladeshi prime minister Sheikh Hasina, which led to strained relations with India and opened the door to renewed ties with Pakistan. The trade deal, finalized in early February, will be executed in two phases, with the first batch of rice already en route to Bangladesh. This resumption of direct trade is seen as a positive step towards fostering economic cooperation and reopening long-dormant trade channels between the two nations. The initiative is expected to offer Bangladesh new avenues for sourcing staples and competitive pricing, crucial for a nation vulnerable to climate change impacts such as floods and cyclones.