Pakistan and Bangladesh have initiated direct trade for the first time since their separation in 1971, with the first government-approved cargo departing from Port Qasim, according to reports from The Express Tribune and Express News.
The agreement, finalized in early February, involves Bangladesh purchasing 50,000 tonnes of Pakistani rice through the Trading Corporation of Pakistan (TCP). The shipment, handled by a Pakistan National Shipping Corporation (PNSC) vessel, marks the first official trade restoration since East Pakistan became the independent state of Bangladesh in 1971 following a nine-month liberation war.
The rice shipment is scheduled for delivery in two phases: the initial 25,000-tonne consignment is currently en route to a Bangladeshi port, with the remaining 25,000 tonnes set to depart in early March.
This move reopens trade channels dormant for over five decades and establishes direct shipping routes between the two nations. The trade deal follows a thaw in bilateral relations after the ouster of Bangladesh’s former Prime Minister Sheikh Hasina in August 2024.
High-level exchanges, including a meeting between Yunus and Pakistani Prime Minister Shehbaz Sharif at the United Nations General Assembly in September 2024, have supported this economic reconnection.
In November 2024, a cargo vessel from Karachi docked at Chittagong port, signaling early maritime contact, though the current rice shipment is the first government-approved trade operation.
Skepticism persists, however, with India Today noting regional geopolitical concerns, particularly India’s wariness of Pakistan’s access to Chittagong port, given its proximity to Myanmar and past tensions with Bangladesh under Hasina’s pro-India administration. Despite these concerns, the trade resumption is poised to reshape economic dynamics between Pakistan and Bangladesh.
Trading Corporation of Pakistan (TCP) is a state-owned entity established in 1967, TCP manages Pakistan’s trade in essential commodities, including rice, wheat, and sugar, facilitating both imports and exports.
Pakistan National Shipping Corporation (PNSC) is a government-owned shipping company headquartered in Karachi, operating a fleet of vessels for cargo transport and maritime logistics.