[🇧🇩] Bangladesh-Pakistan Relation---Can we look beyond 1971?

[Bilal9]

Ctg-Karachi direct shipment: Businesses eye trade boost with Pakistan​

Two voyages completed in less than one and half months​

Infographic: TBS

Infographic: TBS

A new direct shipping route between Chattogram Port and Karachi Port in Pakistan has been met with enthusiasm from local businesses as they expect a trade boost between the two countries.

The service, launched by Dubai-based container shipping company Feeder Lines DMCC, has already completed two successful voyages, significantly reducing shipment time and costs for importers.

Earlier, goods from Karachi had to transit through various ports like Colombo, Singapore and Dubai, adding at least 20 days to the journey. The new direct route has slashed transit time to just 11 days, offering importers a more reliable and cost-effective option.

Khairul Alam Suzan, vice president of the Bangladesh Freight Forwarders Association, told TBS, "Earlier, there was no certainty about the delivery time of imported goods from Pakistan, as there were often delays at transshipment ports."

A Panama-flagged vessel, YUAN XIANG FA ZHAN, completed its second voyage to the Chattogram port yesterday, carrying over 825 TEUs (twenty-foot equivalent units) of cargo, more than double the amount of the first voyage.

The cargo included various commodities such as sugar, soda ash, denim fabric, yarn, dolomite lumps, natural dolomite, dried fish, UPS, potatoes and radiator cores.

Businesspeople say importers of industrial raw materials will now have the certainty of obtaining their goods within a set period. As a result, the volume of imports and exports with Pakistan is expected to increase further, they say.

Anis Uddin Dowla, executive director of Karnaphuli Limited, was optimistic about the future of the route. "The overwhelming response from businesses, as evident in the increased cargo volume on the second voyage, is encouraging," he said.

According to NBR data, Bangladesh's imports from Pakistan amounted to $74.4 million in fiscal year 2023-24. Of this, nearly 70% consists of raw materials for the ready-made garment industry and processed leather. Additionally, cement clinker, fruits and three-piece garments are imported.

Bangladesh exported goods amounting to $62.6 million to Pakistan in FY24. The export items include jute, pharmaceuticals, hydrogen, tea and ready-made garments.

In the last fiscal year, the total quantity of imported goods from Pakistan was 1.6 million tonnes, of which less than 300,000 tonnes were containerised goods. In FY22, the value of imported goods from Pakistan amounted to $80 million.

Shafiqul Alam Jewel, vice chairman of the Bangladesh Shipping Agents Association, said direct shipping between Chattogram and Karachi has increased the volume of imported goods. At the same time, it will boost exports to Pakistan as well, he said.

"This is very beneficial for our country's economy. However, it is essential to ensure that this service does not stop midway. Additionally, it is crucial to verify whether the declared goods for import align with what is actually being imported," Jewel said.

He further said the shorter the time required, the lower the cost of importing goods. "This is because reduced time will result in lower LC value, particularly reduced LC interest. Importers will be able to deliver products to buyers quickly and recover their investments faster. This will benefit both buyers and importers," Jewel explained.

Relaxation of physical inspections

Previously, even after goods arrived from Pakistan, various complications would arise during clearance. In particular, customs conducted physical inspections on all types of goods coming from Pakistan before clearance.

"This not only extended the time required for goods to arrive but also discouraged importers from showing much interest in trading with Pakistan due to the hassles of clearance," said a port official.

However, after the fall of the Awami League regime, the interim government resolved the complications surrounding the clearance of imported goods from Pakistan. To facilitate trade between the two countries, the National Board of Revenue (NBR) withdrew the mandatory requirement for 100% physical examination of all imported goods from Pakistan.

"As a result of the lifting of this requirement, goods imported from Pakistan will now be inspected based on risk assessment, similar to goods imported from other countries," states an NBR information issued on 29 September.

Approximately one and a half months after the NBR's directive, the Panamanian-flagged ship arrived at Chattogram port on 11 November, carrying imported goods from Pakistan's Karachi port for the first time.

 

[Saif]

How Pakistan & Bangladesh emerging alliance shaking India's hegemony?

 

[Saif]

Bangladesh, Pakistan to form joint business council

The apex trade bodies of Bangladesh and Pakistan signed a memorandum of understanding (MoU) yesterday to form a joint business council to strengthen trade between the two countries.

www.thedailystar.net

Bangladesh, Pakistan to form joint business council

The apex trade bodies of Bangladesh and Pakistan signed a memorandum of understanding (MoU) yesterday to form a joint business council to strengthen trade between the two countries.

Hafizur Rahman, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), and Atif Ikram Sheikh, president of the Pakistan Federation of Chambers of Commerce and Industry (FPCCI), penned the deal.

Syed Ahmed Maroof, Pakistan's high commissioner to Bangladesh, was present at the signing ceremony, titled "Bangladesh-Pakistan Business Forum", at Pan Pacific Sonargaon Dhaka.

The FBCCI organised the event, where business leaders stressed taking joint initiatives to avail untapped potentials of trade and investment between Bangladesh and Pakistan.

The Pakistan High Commission in Dhaka, in a statement, said the joint business council would serve as a platform for the exchange of trade and investment information and the formation of business delegations.

It will also enable the participation of businesses in trade exhibitions in both countries and oversee other initiatives aimed at promoting economic cooperation and unlocking the potential for mutual growth, it said.

The Pakistani high commissioner termed the initiative as a step forward towards facilitating businesses on both sides, encouraging collaboration, and enhancing bilateral trade ties.

The FBCCI administrator said although there had been continuous growth in trade and commerce between Bangladesh and Pakistan in the past years, many potential sectors, including agriculture, textiles, medicine, and ICT, remain unexplored.

"It is possible to increase trade and commerce between the two countries manifold through joint initiatives," he said.

He stressed utilising the South Asian Association for Regional Cooperation (Saarc) and the Organization of Islamic Cooperation (OIC) to strengthen the bilateral trade relations.

The FPCCI president said there was ample opportunity for the two countries to work together, especially in the agriculture, pharmaceutical, leather, machinery, chemical, and ICT sectors.​

 

[Saif]

Bangladesh-Pakistan trade yet to reach expected level

Bilateral trade between Bangladesh and Pakistan has not reached the expected level as the two countries face significant challenges, including non-tariff barriers and tariff disparities, said Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI).

www.thedailystar.net

Bangladesh-Pakistan trade yet to reach expected level
Says DCCI chief

Bilateral trade between Bangladesh and Pakistan has not reached the expected level as the two countries face significant challenges, including non-tariff barriers and tariff disparities, said Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI).

He made this comment during a visit by a business delegation from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to the DCCI office. The delegation attended the "Bangladesh-Pakistan Business Forum" yesterday with a view to boosting bilateral trade and investment.

During the fiscal year 2023-2024, Bangladesh imported goods worth $627.8 million from Pakistan while exporting goods valued at $61.98 million, he said.

Resuming direct flights between Dhaka and Karachi and introducing shipping routes would facilitate smoother trade, he added.

To unlock the full potential of bilateral trade, both nations could consider signing a bilateral trade agreement, such as a free trade agreement or a preferential trade agreement, he suggested.

To unlock the full potential of bilateral trade, both nations could consider signing a bilateral trade agreement, said DCCI president

Sectors such as agriculture, cement clinkers, leather goods, surgical instruments, chemicals, IT, and public health management offer significant opportunities for joint initiatives, Ahmed opined.

Atif Ikram Sheikh, president of the FPCCI, noted that despite the vast potential, bilateral trade has not yet reached the desired level.

He mentioned that about 55 percent of Pakistan's total exports to Bangladesh come from the textile and apparel sector, while most of Bangladesh's exports rely on the readymade garment sector. This highlights the scope for diversifying the range of products involved in import-export activities, he added.

Sheikh urged Bangladeshi entrepreneurs to import more agricultural products, rice, ceramics, and other goods from Pakistan.

He also recognised Bangladesh's recent advancements in information technology and mobile financing. Sheikh proposed that the two countries collaborate on joint investments, particularly in the IT sector.

Additionally, he encouraged Bangladeshi exporters to use Pakistan as a corridor for exporting goods to other countries. He emphasised that developing infrastructure in the logistics sector would expedite both exports and imports.

Syed Ahmed Maroof, high commissioner of Pakistan to Bangladesh, remarked that the movement of goods between the two countries by sea has recently commenced. He expressed optimism that if trade and investment activities continue to grow, bilateral trade could reach $3 billion within the next two to three years.

Razeev H Chowdhury, senior vice-president of the DCCI, pointed out that both countries have a large pool of young and innovative individuals, particularly in the IT sector.

To harness this potential, he urged Pakistani IT entrepreneurs to invest in Bangladesh's hi-tech parks.​

 

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