Pakistan has expressed strong interest in further strengthening its economic ties with Bangladesh, recognising the huge potential between the two nations. This was reflected when Pakistan’s Prime Minister Shehbaz Sharif met Bangladesh’s Chief Adviser Prof Muhammad Yunus on the sidelines of the UN General Assembly in New York on September 24.During the meeting, the Pakistani premier invited Prof Yunus to visit Pakistan before the conclusion of the interim government’s tenure. The gesture comes at a time when bilateral trade has shown notable growth, reaching $865 million in FY2025, up from $711.7 million in FY2024.
Pakistan’s exports to Bangladesh rose nearly 19% in FY2025 to $787 million, driven by cotton, salt, and inorganic chemicals. Bangladesh’s exports to Pakistan also surged by about 38%, reaching $78 million compared to $56 million in the previous fiscal year. Analysts believe the trade basket remains narrow but holds much larger potential—Pakistan alone has an estimated $2.95 billion export potential in Bangladesh, particularly in textiles, agriculture, and chemicals. Similarly, Bangladesh has scope to expand its export footprint in Pakistan.
Bangladesh’s recent rice import deal with Pakistan is viewed as a significant step in diversifying its trading partners and reducing reliance on traditional suppliers. Still, experts caution that sustaining momentum will require overcoming historical challenges and building long-term trust.
Chief Adviser’s Press Secretary Shafiqul Alam informed reporters that the two leaders also discussed Bangladesh’s upcoming general election, reforms introduced by the interim government, the devastating floods in Pakistan, as well as wider regional cooperation. Prof Yunus said Bangladesh remains on course to hold its election in February, noting that the major reforms proposed by 11 national commissions—currently being finalised through talks with political parties—would prevent the rise of another autocrat in the country.
With SAARC largely inactive, both leaders explored alternative platforms to deepen regional collaboration. In August, Dhaka and Islamabad had already reaffirmed their commitment to strengthening ties for mutual benefit, rooted in mutual respect and shared interests.
On September 25, Commerce Adviser Sk. Bashir Uddin met Pakistan Prime Minister’s Trade Coordinator Ihsaan Afzal Khan in Dhaka to discuss trade and investment opportunities. Bashir Uddin stressed Bangladesh’s heavy reliance on imported raw materials for its cement industry, particularly limestone and construction-grade stone, estimating an annual need of 50 million tons. He emphasised improving labour productivity, logistics, cost of finance, and market access to diversify the trade basket, reduce the deficit, and strengthen people-to-people ties. He also called for greater opportunities for Bangladeshi exporters in the Pakistani market.
Ihsaan Afzal underlined the importance of removing trade barriers and expanding facilities to boost bilateral engagement. Both sides are considering forming a joint business council to resolve bottlenecks and promote long-term cooperation.
Bangladesh and Pakistan only resumed direct trade in February 2025 after more than five decades, yet the sharp increase in exchanges underscores the opportunities ahead. Realising these prospects, however, will require pragmatic steps and swift action to cut through bureaucratic hurdles and unlock the full potential of bilateral trade.
