Bangladesh and Pakistan Begin Direct Trade with Historic Rice Import
Bangladesh and Pakistan have initiated their first government-to-government trade in decades, marked by the import of 50,000 tonnes of rice. This move follows a thaw in relations after the ousting of Bangladesh’s long-time prime minister, Sheikh Hasina.
Key Developments
- Government-to-Government Trade: Bangladesh’s Directorate General of Food signed a deal with Pakistan’s Trading Corporation for rice imports.
- First Direct Cargo Ship: In November 2024, private trade resumed with a direct cargo ship from Pakistan to Bangladesh, bypassing intermediate ports.
Strategic Importance
- Food Security: With climate change increasing Bangladesh’s vulnerability to natural disasters, securing rice imports is critical. Pakistan’s rice provides an alternative to imports from India, Thailand, and Vietnam.
- Geopolitical Shifts: The shift in Bangladesh’s leadership has allowed for improved relations with Pakistan, amid cooling ties with India.
This new trade agreement between Bangladesh and Pakistan marks a significant step in strengthening economic ties, offering Bangladesh a competitive and reliable source of rice while addressing critical food security needs.
