Vansh Gupta.

In a significant development in regional trade, Bangladesh and Pakistan have officially resumed direct government-to-government trade after a prolonged period of strained relations, as reported by The Hindu.

On Tuesday, (25 February), Dhaka confirmed the import of 50,000 tonnes of rice from Pakistan, marking a major milestone in diplomatic and economic ties between the two nations.

The trade agreement comes decades after Bangladesh’s 1971 war of independence, which saw the country break away from Pakistan and forge closer relations with India. 

However, diplomatic dynamics have shifted following the ouster of Sheikh Hasina in August 2024, which led to a cooling of ties between Dhaka and New Delhi, creating space for Islamabad and Dhaka to reestablish relations.

First Direct Trade Agreement in Decades

The first direct cargo shipment between Pakistan and Bangladesh in several decades took place in November 2024, when a container ship sailed from Karachi to Chittagong. This marked the resumption of private trade between the two countries, paving the way for the recent government-to-government deal.

Ziauddin Ahmed, a senior official at Bangladesh’s food ministry, confirmed that the government has now imported 50,000 tonnes of rice from Pakistan, formalising the first-ever state-level trade agreement between the two nations.

The Directorate General of Food in Bangladesh signed a Memorandum of Understanding (MoU) with Pakistan’s state-owned Trading Corporation of Pakistan (TCP) in January 2025 for these rice imports.

Ahmed highlighted that trade with Pakistan introduces a “new avenue of sourcing and competitive pricing”, as Bangladesh has traditionally sourced rice from India, Thailand, and Vietnam.

Why Bangladesh’s Rice Imports Matter

Bangladesh, home to 170 million people, is among the most climate-vulnerable countries in the world. With much of its land situated in low-lying delta regions, the country is at high risk of devastating floods and cyclones, which are becoming increasingly severe due to climate change.

As a result, ensuring a steady supply of essential food grains remains a top priority for the government. The new trade agreement with Pakistan is seen as a strategic move to diversify its sources of rice imports, reducing over-reliance on a handful of suppliers.

For years, private Bangladeshi companies have imported Pakistani goods, but logistical hurdles required shipments to be offloaded at intermediary ports in Sri Lanka, Malaysia, or Singapore before reaching Bangladesh. 

Direct shipments, such as those now taking place, eliminate such complexities and lower costs.

Recently, Chinese officials hosted delegations from the Bangladesh Nationalist Party (BNP), Jamaat-e-Islami, and other political factions in Beijing, fueling speculation about China’s growing influence in Dhaka. 

China has also announced plans to establish dedicated hospitals for Bangladeshi patients, further indicating a strategic push to expand its footprint in the region.

Published Date: February 27, 2025