Ali Hassan

Pakistan has developed a strong partnership with Bangladesh in recent years that has great potential to improve its export industry, said a senior official. “Pakistan and Bangladesh are working together to boost their economies. This collaboration has opened doors for trade and investment, leading to a significant increase in Pakistan's exports to Bangladesh,” said a senior official of Trade Development Authority of Pakistan (TDAP) while talking to WealthPK. “The increase in Pakistan's exports to Bangladesh is because their economies work well together. Bangladesh has a strong textile industry, but relies on importing materials like cotton and yarn. Pakistan has a robust textile sector and produces plenty of cotton and yarn.

This collaboration benefits both countries because Pakistan can provide the materials Bangladesh needs,” he added. According to TDAP’s annual report for fiscal year 2020-21, the export of cotton yarn increased by 3% to $1.01 billion during the fiscal year 2020-21 compared to $984.9 million during the corresponding period of FY20. Removing trade barriers and signing preferential trade agreements have helped Pakistan and Bangladesh increase their trade. They have eliminated taxes on various products and strengthened their trade relations through the Pakistan-Bangladesh Free Trade Agreement (FTA). As a result, Pakistan's exports to Bangladesh have significantly risen, particularly in textiles, pharmaceuticals, and chemicals.

According to the Ministry of Commerce, Pakistan’s exports of pharmaceutical increased by 28.06% to $256.79 million during the first nine months (July-March) of fiscal year 2022-23 compared to $200.53 million during the corresponding period of the last fiscal year. “Pakistan and Bangladesh’s collaboration on joint ventures and investments has been significant. Pakistani investors recognise the potential for high returns in the Bangladeshi market, leading to partnerships in textiles, pharmaceuticals, agriculture, and construction sectors. These collaborations have not only boosted Pakistan's exports, but also created employment opportunities and facilitated the transfer of technology between the two nations,” said the official.

According to Economic Survey of Pakistan 2022-23, the exports of Pakistan to Bangladesh increased to Rs135.3 billion during July-March FY23 compared to Rs125.1 billion during the corresponding period of FY22. “The exports of Pakistani rice, in particular, have seen a significant surge as Bangladesh has become a major importer, driven by the superior quality and competitive pricing of Pakistani rice,” the official said. According to State Bank of Pakistan (SBP) data, Pakistan’s goods and services trade with Bangladesh witnessed a surplus of 46.65% during the first six months of the financial year 2021-22 compared to the corresponding period of the previous year.

The overall exports to Bangladesh were recorded at $399.408 million during July-December 2021-22 against exports of $274.246 million during July-December 2020-21. The governments of Pakistan and Bangladesh have implemented policies to support trade and investment. They have established specialised institutions and organised trade exhibitions and forums to facilitate business interactions. These initiatives have been instrumental in building trust, forming partnerships, and expanding Pakistan's export potential. The synergies between the economies of Pakistan and Bangladesh, the elimination of trade barriers, the establishment of joint ventures, geographical proximity, and policy initiatives have all played a pivotal role in driving trade growth.

Credit : Independent News Pakistan-WealthPk