Bangladesh has resumed direct trade with Pakistan for the first time since its independence in 1971, initiating this renewed economic relationship with the import of 50,000 tonnes of rice. The initial shipment of 25,000 tonnes has already departed from Port Qasim, with the remaining 25,000 tonnes scheduled for dispatch in early March.
This trade agreement, finalized in early February, involves Bangladesh purchasing white rice from Pakistan at a rate of $499 per tonne through the Trading Corporation of Pakistan. Notably, this price is higher than the $474.25 per tonne Bangladesh has been paying for rice imported from Vietnam.
The resumption of direct trade between the two nations comes in the wake of significant political changes in Bangladesh, including the establishment of an interim government led by Nobel laureate Muhammad Yunus.
This development has been accompanied by efforts to stabilize the domestic rice market, which has experienced a 15-20% price increase in recent months, with medium-quality rice selling at approximately 80 taka ($0.66) per kilogram.
To address these challenges, the Bangladeshi government is increasing rice imports and has removed import duties to help control rising prices. This strategy aims to mitigate the impact of recent floods that destroyed an estimated 1.1 million tonnes of rice, significantly affecting the country’s food supply and contributing to the urgency of securing additional rice imports.
The renewed trade relations between Bangladesh and Pakistan not only aim to address immediate food security concerns but also signify a broader commitment to strengthening economic ties and regional cooperation after more than five decades of limited direct trade.
