Dhaka, Islamabad Discuss Trade : Bangladesh Gets Big Offer From Pakistan Amid Frayed Ties With India

28th October 2025 at 1:57 PM

1 minute read

At a time when strained India-Bangladesh ties have tightened the screws on bilateral trade, Pakistan has spotted an opening as it warms up to Dhaka.

Dhaka : At a time when strained India-Bangladesh ties have tightened the screws on bilateral trade, Pakistan has spotted an opening as it warms up to Dhaka. On Monday, Pakistan courted Bangladesh with a trade lifeline — offering the use of its Karachi port for the export of jute products and other goods. The deal was reached as Pakistan and Bangladesh, amid a newfound bonhomie, held the Joint Economic Commission (JEC) meeting in Dhaka after a two-decade gap.

Sensing an opportunity amid deteriorating India-Bangladesh ties, Pakistan has offered Bangladesh the use of the Karachi port, giving it a gateway for trade with countries such as China, the Gulf, and Central Asian nations. However, the route is not cost-effective, with the 2,600 nautical miles-long journey taking around two weeks to complete. Since then, there has been little movement on this front.

Pakistan has also decided to reduce taxes on jute and certain other products to help Bangladesh enhance jute exports, according to Bangladeshi media reports. Earlier this year, Pakistan already removed the 2% customs duty on jute imports from Bangladesh. On the other hand, Pakistan has requested expedited market access for mango exports to Bangladesh, eyeing the gap left by declining India’s mango exports to Dhaka.

Bilateral trade between the two nations has always been low and tilted towards Pakistan. Of the $865 million worth of bilateral trade in the 2024-25 fiscal year, Pakistan exported about $778 million. Jute and jute products account for about 38% of Bangladesh’s exports to Pakistan. Previously, India banned the import of woven fabrics and ready-made garments from Bangladesh via land routes.

Until now, India has been one of the top importers of Bangladeshi jute and related products. The series of measures taken by India will likely make Bangladeshi jute products less competitive in the Indian market. However, Muhammad Yunus’s takeover as the interim head of Bangladesh saw a political shift in Dhaka. Yunus has reshaped Bangladesh’s foreign policy, warming up to previously estranged partners like Pakistan and China.