Bangladesh resumes direct trade with Pakistan after 50 years
Bangladesh has resumed direct trade with Pakistan after over 50 years with the first shipment of 50,000 tonnes of rice leaving Port Qasim under a deal between Islamabad and Dhaka.
The two nations have seen a drastic improvement in bilateral relations since the interim government led by Nobel laureate Muhammad Yunus took power in Bangladesh after protests toppled former prime minister Sheikh Hasina last August and sent her fleeing to India.
Bangladesh was once a part of Pakistan but became independent after a nine-month war with Islamabad in 1971.
The export of rice marks the first instance of direct trade between the two countries in 54 years.
'For the first time, a Pakistan National Shipping Corporation vessel carrying government cargo will dock at a Bangladeshi port, marking a significant milestone in maritime trade relations,' Pakistani daily The Express Tribune reported.
To begin with, Bangladesh is buying 75,000 tonnes of white rice at £395 per tonne from the Trading Corporation of Pakistan. The remaining 25,000 tonnes of grain is expected to be delivered in early March. Dhaka appears to be paying a higher price for Pakistani rice compared to its procurement from Vietnam. The country has been importing rice from Hanoi at £375.63 per tonne.
The interim government has been trying to stabilise the rice market as prices have risen by 15-20 per cent in recent months.
The new trade deal between the two countries came after Dhaka in January simplified the visa process for Pakistanis to further strengthen economic relations. The interim government removed the requirement of clearance from Dhaka for Pakistani heads of missions to get visas, Bangladesh's high commissioner to Islamabad, Iqbal Hussain, told reporters.
Mr Hussain said increasing trade and investment between the two countries "must be a top priority" for Dhaka and Islamabad.
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