Growing Ties Between Bangladesh and Pakistan: What’s in It for Dhaka?

New Delhi, October 31 (Daily Kiran) : Recent discussions have emerged regarding the increasing closeness between Bangladesh and Pakistan after years of limited interaction. Observers are questioning what tangible benefits this new relationship will bring to Dhaka, especially given the ongoing trade imbalances and unresolved historical issues between the two nations.

According to a report by the Bangladeshi news website Daily Wada, there has been a notable increase in communication and exchanges between the two countries in recent months. Air connectivity has expanded, with regular shipping routes established from Karachi to the Chittagong port. Additionally, scholarship programs have been announced, and there has been a rise in visits from both governmental and private sector delegations.

However, trade statistics reveal a significant imbalance. In the fiscal year 2025-26, Pakistan’s exports to Bangladesh amounted to $6.72 million, with a trade ratio favoring Pakistan at approximately 11:1. This figure was slightly higher at $7.16 million in the previous fiscal year.

The report highlights that most of Pakistan’s exports to Bangladesh consist of raw materials related to the cotton and textile industries, which have become more competitive due to the depreciation of the Pakistani rupee. Conversely, Bangladesh has long sought tariff concessions on jute and jute products, where it holds a strong global position. Pakistan relies heavily on Bangladesh for its raw jute and jute yarn needs, yet higher tariffs on value-added jute products limit the market access for Bangladeshi goods.

Industry representatives have noted a significant decline in Bangladesh’s jute imports from Pakistan due to the existing tariff structure. While Pakistan has publicly set ambitious goals for increasing exports to Bangladesh, no similar targets have been announced by Bangladesh for boosting its exports.

In the digital sector, Bangladesh performs well on various international indices. However, Pakistan has made considerable strides in integrating financial institutions, digital wallets, and government services onto shared platforms.

The report suggests that institutional and technical cooperation could prove to be more valuable than trade in the long run. Nevertheless, Dhaka must navigate the potential benefits while balancing historical disputes, market access concerns, and domestic political sensitivities that continue to influence relations between the two countries.