Pakistan and Bangladesh share a strong rice trade relationship, but challenges like quality concerns and price volatility persist. Strengthening quality, trade facilitation, and cooperation can enhance future prospects.

Ayesha Bashir.

Rice, a fundamental and essential food source in Pakistan and Bangladesh, has been a cornerstone of trade between the two nations, underpinning their bilateral cooperation. Pakistan and Bangladesh boast a heritage of trade collaboration, spanning several decades, with rice being a prominent commodity in their bilateral exchange. The trade dynamics between the two nations reveal that Bangladesh stands as a major importer of Pakistani rice, while Pakistan is also an important destination for Bangladeshi rice shipments. The unique blend of geographical proximity and cultural-historical affinities between Pakistan and Bangladesh have fostered a strong foundation for their trade relationship.

‎According to the Pakistani Bureau of Statistics (PBS), in 2020, Pakistan’s rice exports to Bangladesh stood at 3.4 million tons, generating $1.2 billion in revenue. Conversely, the Bangladesh Bureau of Statistics (BBS) reported that the country imported 2.5 million tons of rice from Pakistan in 2019, amounting to $1.1 billion.

‎Despite the impressive trade figures, the Pakistan-Bangladesh rice trade has faced several challenges in recent periods. A significant concern has been the perceived low quality of Pakistani rice, which has been criticised by Bangladeshi buyers for not meeting their standards. In addition, the trade has been impacted by volatility in global rice prices, as well as alterations in government policies and regulations.

‎As of 2022, the Pakistan-Bangladesh rice trade maintained its importance in their bilateral relationship. As reported by the PBS, Pakistan’s rice exports to Bangladesh reached 2.8 million tons in 2022, with a total value of $1.3 billion. In tandem with this, the BBS reported that Bangladesh imported 2.2 million tons of rice in 2022, amounting to $1.2 billion.

Upgrading the rice sector through strategic investments in logistics, storage, and processing can enhance the trade’s efficiency and competitiveness

The current state of Pakistan-Bangladesh rice trade dynamics is complex and shaped by a myriad of influences. The COVID-19 pandemic triggered a global supply chain crisis, resulting in trade disruptions and fluctuations.

Furthermore, the implementation of protectionist measures, including tariffs and quotas, has introduced additional complexities to the trade.

‎To tackle the challenges facing the Pakistan-Bangladesh rice trade, both countries have adopted a centralised approach. Pakistan has enforced quality control measures for its rice exports, including the establishment of rice testing laboratories. Bangladesh, on the other hand, has eased its import regulations, making it possible for Pakistani rice to enter the market at competitive prices.

‎Despite the steps taken, several solutions are still needed to strengthen the Pakistan-Bangladesh rice trade, including improvements in quality standards, enhancement of trade facilitation, promotion of investment, and fostering cooperation.

‎To remain competitive, Pakistan must sustain efforts to enhance the quality of its rice exports to align with the demands of Bangladeshi importers. To facilitate trade, Pakistan and Bangladesh need to rationalise their trade protocols, eliminating unnecessary complexities and reducing the time and financial burden of cross-border trade. 

Moreover, upgrading the rice sector through strategic investments in logistics, storage, and processing can enhance the trade’s efficiency and competitiveness.

‎Sustained dialogue and cooperation between Pakistan and Bangladesh are essential for identifying and addressing the challenges facing the trade.

‎Ultimately, the Pakistan-Bangladesh rice trade is a vital artery of their bilateral relations, serving as a substantial source of revenue for both nations. Although the trade has been beset by challenges like quality concerns and global price volatility, both nations have adopted strategies to tackle these problems. By persisting in quality improvement, trade facilitation, investment promotion, and cooperation, the Pakistan-Bangladesh rice trade can flourish, yielding benefits for both nations and citizens.

Published Date: March 6, 2025