Bangladesh resumes direct trade with Pakistan for first time since 1971
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Bangladesh has resumed direct trade with Pakistan for the first time since its independence in 1971, with the first shipment of 50,000 tonnes of rice leaving Port Qasim under a government-to-government deal, officials said.
The deal follows an improvement in diplomatic relations since an interim government in Bangladesh led by Nobel laureate Muhammad Yunus taking over in the wake of the protests that drove then-prime minister Sheikh Hasina out of the country.
The new agreement, finalised earlier this month, sees Bangladesh purchasing white rice from Pakistan at $499 per ton through the Trading Corporation of Pakistan. The shipment will be delivered in two phases, with the remaining 25,000 tonnes expected in early March.
However, the price of rice is higher than that of rice from Vietnam, which Bangladesh has been importing at $474.25 per ton.
The government has been battling to stabilise the rice market, as prices have risen by 15-20% in recent months, with medium-quality rice selling at around 80 taka ($0.66) per kilo.
To control rice prices, the government is importing more rice from international markets, including through tenders, and has scrapped import duties.
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In order to win some legitimacy, Yunus should have gone for a public referendum, but he continued as the head of the government and pledged to hold elections after reforming institutions latest by June 2026. Later on, he advanced the election date to April 2026. Critics argue that instead of focusing on the economy, governance and reforms, Yunus has conducted 11 foreign tours during the 10 months of his rule so far. The Yunus regime supporters, like the newly formed National Citizens Party (NCP) of student leader Nahid Islam and Jamaat-i-Islami, feel concerned about the growing popular chagrin against the caretaker government. Initially, the Yunus regime tried to take advantage of the Awami League government's repression against the protesting students that resulted in the killing of more than 1,400 people. Second, Army Chief General Waker-uz-Zaman who was supportive to the Yunus regime and provided him space to run the government is now giving a different message. 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