Print: 02 Nov 2025
Despite significant trade potential, Bangladesh-Pakistan bilateral trade remains largely untapped due to long-standing political issues.
Following last August’s political regime change in Dhaka, a new opportunity has emerged to strengthen economic relations and boost intra-regional commerce.
Economists and business leaders have called for signing a Free Trade Agreement (FTA) with Pakistan to expand trade, remove tariff and non-tariff barriers, improve direct connectivity, and ease business policies.
Industry insiders stressed that introducing direct passenger and cargo flights would further enhance business links between the two countries.
Meanwhile, Commerce Adviser Sk Bashir Uddin announced that the government is moving to reactivate the long-dormant Bangladesh-Pakistan Joint Economic Commission, inactive for nearly 15 years, to boost trade and investment with Pakistan.
He made the announcement after a meeting with visiting Pakistani Commerce Minister Jam Kamal Khan at the Secretariat in Dhaka on Thursday.
“We are working to revive the Joint Economic Commission and are also discussing the formation of a new Trade and Investment Commission,” Bashir said. “If the two countries can jointly, or with foreign investment, produce intermediate goods, it would benefit both sides.”
He noted that Bangladesh imports around US$80 billion worth of goods annually, including $15 billion in food and intermediate products. “There is ample scope to expand trade in these items with Pakistan. The new Trade and Investment Commission will help identify and explore such opportunities,” he added.
Trade remains modest but growing
According to Export Promotion Bureau (EPB) and Bangladesh Bank data, bilateral trade stood at $689.76 million in 2023-24 fiscal year (FY24), compared to $782.63 million in FY23, $751.68 million in FY22, $585.41 million in FY21, and $594.44 million in FY20.
Bangladesh exported goods worth only $61.98 million to Pakistan in FY24, while imports totaled $627.78 million, leaving a trade gap of $565.80 million.
Bangladesh’s exports to Pakistan mainly include clothing accessories, rags, jute yarn, cordage, rope, and certain pharmaceutical products. Imports from Pakistan include mineral and chemical products, machinery and electrical equipment, textiles, agricultural goods, arms and ammunition, and processed foodstuffs.
Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, is currently visiting Dhaka on a four-day official trip to strengthen bilateral trade and economic cooperation.
‘B2B should explore opportunities’
Speaking to the Daily Sun, Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), said that there is huge trade potential between the two countries, but business-to-business (B2B) engagement must take the lead in exploring opportunities.
He said, “As SAFTA is now dysfunctional, Bangladesh should adopt a strategy to boost trade with Pakistan, which will also help intra-regional commerce.”
Razzaque added that Pakistan’s textile and agriculture products are highly competitive, while Bangladesh’s jute goods and plastic products hold strong potential in the Pakistani market. “A feasibility study should first be conducted before moving toward an FTA,” he noted.
According to the Atlantic Council, discussions on a Bangladesh-Pakistan FTA date back to 2002 and were revisited at the 2004 SAARC summit, but the deal stalled as Pakistan declined Bangladesh’s request for unilateral market access.
A Pakistan Business Council (PBC) analysis suggests Pakistan has an export potential of $2.95 billion to Bangladesh, mainly in textiles, agriculture, foodstuffs, chemicals, plastics, metals, and cement.
Political decisions remain key
Inamul Haq Khan, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), acknowledged the trade potential between the two countries but said political factors remain a major hurdle.
He told the Daily Sun, “There is trade potential between Bangladesh and Pakistan, but political factors remain a hurdle. The legacy of the 1971 Liberation War still influences government decisions. However, signing an FTA could help products from both countries gain greater market access.”
Inamul, who is also managing director of Ananta Garments Ltd, said his company imports textiles from Pakistan for producing ready-made garment items for global retailers like H&M.
“Pakistani textiles are excellent in quality and importing from there takes only 7-8 days, compared to 20-25 days from China. While we always prioritise local textiles, if buyers prefer Pakistani fabric, we source from there,” he explained.
Business forum remains inactive
The Bangladesh-Pakistan Business Forum (BPBF) was launched in April this year during a Pakistani trade delegation’s visit to Dhaka, with an MoU signed between BGMEA and the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA).
However, Inamul Haq Khan said the forum has seen “no real progress” since its launch.
Pakistani exhibition planned in Dhaka
During a meeting with the Dhaka Chamber of Commerce & Industry (DCCI) on Thursday, Pakistan’s Commerce Minister Jam Kamal Khan said that if both countries adopt new technologies and enhance value addition in agriculture, they could tap into billion-dollar global markets.
He also announced plans to organise a “Single Country Exhibition” of Pakistani products in Bangladesh soon, aimed at strengthening private sector engagement.
DCCI President Taskeen Ahmed noted that people of both countries share strong cultural and lifestyle similarities, which could help foster closer business ties.
(The reporter can be reached at: [email protected])
Edited by: Anayetur Rahaman
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Bangladesh-Pakistan trade ties: Huge potential, largely untapped
Despite significant trade potential, Bangladesh-Pakistan bilateral trade remains largely untapped due to long-standing political issues.
Following last August’s political regime change in Dhaka, a new opportunity has emerged to strengthen economic relations and boost intra-regional commerce.
Economists and business leaders have called for signing a Free Trade Agreement (FTA) with Pakistan to expand trade, remove tariff and non-tariff barriers, improve direct connectivity, and ease business policies.
Industry insiders stressed that introducing direct passenger and cargo flights would further enhance business links between the two countries.
Meanwhile, Commerce Adviser Sk Bashir Uddin announced that the government is moving to reactivate the long-dormant Bangladesh-Pakistan Joint Economic Commission, inactive for nearly 15 years, to boost trade and investment with Pakistan.
He made the announcement after a meeting with visiting Pakistani Commerce Minister Jam Kamal Khan at the Secretariat in Dhaka on Thursday.
“We are working to revive the Joint Economic Commission and are also discussing the formation of a new Trade and Investment Commission,” Bashir said. “If the two countries can jointly, or with foreign investment, produce intermediate goods, it would benefit both sides.”
He noted that Bangladesh imports around US$80 billion worth of goods annually, including $15 billion in food and intermediate products. “There is ample scope to expand trade in these items with Pakistan. The new Trade and Investment Commission will help identify and explore such opportunities,” he added.
Trade remains modest but growing
According to Export Promotion Bureau (EPB) and Bangladesh Bank data, bilateral trade stood at $689.76 million in 2023-24 fiscal year (FY24), compared to $782.63 million in FY23, $751.68 million in FY22, $585.41 million in FY21, and $594.44 million in FY20.
Bangladesh exported goods worth only $61.98 million to Pakistan in FY24, while imports totaled $627.78 million, leaving a trade gap of $565.80 million.
Bangladesh’s exports to Pakistan mainly include clothing accessories, rags, jute yarn, cordage, rope, and certain pharmaceutical products. Imports from Pakistan include mineral and chemical products, machinery and electrical equipment, textiles, agricultural goods, arms and ammunition, and processed foodstuffs.
Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, is currently visiting Dhaka on a four-day official trip to strengthen bilateral trade and economic cooperation.
‘B2B should explore opportunities’
Speaking to the Daily Sun, Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), said that there is huge trade potential between the two countries, but business-to-business (B2B) engagement must take the lead in exploring opportunities.
He said, “As SAFTA is now dysfunctional, Bangladesh should adopt a strategy to boost trade with Pakistan, which will also help intra-regional commerce.”
Razzaque added that Pakistan’s textile and agriculture products are highly competitive, while Bangladesh’s jute goods and plastic products hold strong potential in the Pakistani market. “A feasibility study should first be conducted before moving toward an FTA,” he noted.
According to the Atlantic Council, discussions on a Bangladesh-Pakistan FTA date back to 2002 and were revisited at the 2004 SAARC summit, but the deal stalled as Pakistan declined Bangladesh’s request for unilateral market access.
A Pakistan Business Council (PBC) analysis suggests Pakistan has an export potential of $2.95 billion to Bangladesh, mainly in textiles, agriculture, foodstuffs, chemicals, plastics, metals, and cement.
Political decisions remain key
Inamul Haq Khan, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), acknowledged the trade potential between the two countries but said political factors remain a major hurdle.
He told the Daily Sun, “There is trade potential between Bangladesh and Pakistan, but political factors remain a hurdle. The legacy of the 1971 Liberation War still influences government decisions. However, signing an FTA could help products from both countries gain greater market access.”
Inamul, who is also managing director of Ananta Garments Ltd, said his company imports textiles from Pakistan for producing ready-made garment items for global retailers like H&M.
“Pakistani textiles are excellent in quality and importing from there takes only 7-8 days, compared to 20-25 days from China. While we always prioritise local textiles, if buyers prefer Pakistani fabric, we source from there,” he explained.
Business forum remains inactive
The Bangladesh-Pakistan Business Forum (BPBF) was launched in April this year during a Pakistani trade delegation’s visit to Dhaka, with an MoU signed between BGMEA and the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA).
However, Inamul Haq Khan said the forum has seen “no real progress” since its launch.
Pakistani exhibition planned in Dhaka
During a meeting with the Dhaka Chamber of Commerce & Industry (DCCI) on Thursday, Pakistan’s Commerce Minister Jam Kamal Khan said that if both countries adopt new technologies and enhance value addition in agriculture, they could tap into billion-dollar global markets.
He also announced plans to organise a “Single Country Exhibition” of Pakistani products in Bangladesh soon, aimed at strengthening private sector engagement.
DCCI President Taskeen Ahmed noted that people of both countries share strong cultural and lifestyle similarities, which could help foster closer business ties.
(The reporter can be reached at: [email protected])
Edited by: Anayetur Rahaman