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

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[🇧🇩] Bangladesh-Pakistan Relation---Can we look beyond 1971?
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Ctg-Karachi direct shipment: Businesses eye trade boost with Pakistan

Two voyages completed in less than one and half months​

Infographic: TBS
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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.
 

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.​
 

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.​
 

A lost chapter in Bangladesh-Pakistan diplomacy

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Bangladesh’s diplomacy is like an old-fashioned wall clock with a pendulum, swinging back and forth. For the past one and a half decades, it had tilted to one side, but now it may be time for a change in direction. In the recent past, relations with many countries were unusually "good," while with others, they deteriorated. Now, efforts are underway to correct these "abnormal" chapters. At this time, efforts are also being made to revive the lost communication in the bilateral relationship between Bangladesh and Pakistan. There has been an increase in conversations between diplomats and politicians of both countries.

2024 marks the 50th anniversary of mutual recognition between Bangladesh and Pakistan. This moment is quite a celebratory one. At such a "favorable moment," as efforts are being made to rebuild the relationship, a natural question arises: will the old sensitive issue of Bangladesh's outstanding dues with Pakistan be settled? This is a fundamental unresolved issue in their relationship.

Resolving unsettled issues is crucial for progress

European countries have been functioning together in a union for 31 years. Unfortunately, the countries of South Asia have had a different experience. They initially separated into several entities and have not been able to form a union like the EU, nor have they managed to maintain even normal bilateral relations in many cases.

Even a small conflict leads to the imposition of stricter visa policies on each other’s citizens. Due to such "teenage" mentality, expected commercial and cultural relations have not progressed.

The Bangladesh-Pakistan relationship has suffered from similar misfortune. Pakistan’s export business with Bangladesh is less than $100 million, and only one-five-hundredth of Bangladesh’s total exports goes to Pakistan. Though Pakistan is somewhat ahead in this regard, high tariffs from Bangladesh have made it difficult for Pakistani goods to enter the country. Over the years, the flow of goods from Pakistan has been closely monitored as a political decision. For a long time, there have been no direct flights from Pakistan International Airlines (PIA) to Dhaka.

Such a situation clearly needs to change. Together, both countries represent a market of over 400 million people. Normal diplomatic relations could open up significant opportunities for both nations. Pakistan could become a good market for Bangladesh's products, ranging from raw jute to pharmaceuticals. Recently, business chambers from both countries have formed a new council to increase trade. However, it is difficult for businessmen alone to smoothen interstate relations; only politicians can do that.

Unresolved issues are few, but complexities high

To move forward, Bangladesh and Pakistan must address their old debts and unresolved issues. A significant obstacle in the past was the issue of Urdu-speaking people stranded in Bangladesh. Since Bangladesh granted them voting rights, Pakistan is now somewhat freed from this responsibility. The government of Dhaka has shown considerable generosity on this matter, and today’s Urdu-speaking generation is less inclined to move to Pakistan.

Another unresolved issue concerns the division of post-independence resources. Although this issue hasn’t been discussed for a long time, it will need resolution to move the relationship forward. From Bangladesh’s perspective, the people have a legitimate claim to these resources, and no policymaker can ignore this demand.

State legacy can be divided

Pakistan and Bangladesh were united for 24 years. After their separation, the division of economic responsibilities naturally arose. These include sharing foreign assets, the foreign currency held in Bangladesh before the war, the surplus generated from exports and imports during the period of East Pakistan, and the receipt and repayment of foreign debts. There is also the matter of compensations for the war victims.

There are many precedents in international law regarding the division of state legacy after partition, the birth of new states, or the unification of two regions. Bangladesh and Pakistan can take guidance from these.

However, due to the political emotions and tensions following 1971, this crucial task was not carried out dispassionately and remains unresolved. Although 54 years have passed, it is a matter that the leaders of both countries must resolve in one way or another.

There are many precedents in international law regarding the division of state legacy after partition, the birth of new states, or the unification of two regions. Bangladesh and Pakistan can take guidance from these conventions to reach a satisfactory resolution on this disputed issue.

In December, during the D-8 summit in Egypt, Bangladesh's interim government’s chief advisor, professor Muhammad Yunus, met with Pakistan’s prime minister Shahbaz Sharif. He appropriately mentioned that “old issues keep resurfacing, and to move forward, the unresolved matters must be settled, especially for the sake of future generations.” They had met earlier during the UN General Assembly as well.

During Nawaz Sharif’s tenure in the past, Pakistan showed the most positive attitude toward bilateral issues. In this light, it can be said that now is a good moment for both countries to move forward in their relations. This is also an opportunity.

Unpleasant past experiences for Bangladesh

Since independence, many Bangladeshi politicians and intellectuals have called for the settlement of old debts. During the war, Pakistan had reserves of about $4.25 billion, part of which many have claimed should be Bangladesh's share.

In 1972, then prime minister Sheikh Mujibur Rahman raised claims on this issue. During Zulfikar Ali Bhutto’s visit in 1974, formal discussions on these debts took place, with Bangladesh presenting a claim for $4 billion.

Later, Bhutto suggested that Bangladesh should also share the foreign debts from before 1971. Even though this was a negative approach, it acknowledged the rationale behind the division of assets, and Bangladesh agreed to take on a part of undivided Pakistan’s foreign debt, amounting to around $360 million.

Under pressure from creditors, Bangladesh agreed to this decision. Bangladesh was positive from the beginning about advancing relations with Pakistan. However, Bangladesh’s acceptance of foreign debt from undivided Pakistan was related to the financial division at that time, and a resolution would need to come in a package.

Although discussions on debts were halted after 1975, in 1978, Shamsul Haq, the foreign minister of Ziaur Rahman’s government, also raised the matter. While the Pakistani government initially remained silent on this issue, later Pakistan’s businessmen began raising concerns about compensating for their abandoned businesses in Bangladesh.

This added complexity to the issue of state legacy. However, there are many elements worth listening to in the views of Pakistan’s industrialists and businessmen. The Bangladeshi government later took some corrective actions in response. But the Pakistani government has always been unwilling and unclear in addressing the state legacy of debts, and at times has used the issue of assets abandoned during the war to deflect attention from the matter.

Such conflicting claims are an obstacle to healthy bilateral relations. What is needed is a solution where both sides can make concessions and receive something in return. Expectations are high that Pakistan’s foreign minister’s upcoming visit to Bangladesh will lead to positive progress on this matter.

The liabilities of the past 54 years

It is true that after the war, many industrial assets of West Pakistan were nationalised in Bangladesh. The Karachi Stock Exchange later made a record of these industries. For such assets, there is a need for extensive research to determine whether the post-war government in Bangladesh managed these properties correctly, how they were distributed, and where these assets are now.

For many, this may seem like opening a Pandora’s Box, but avoiding the responsibilities of history is truly difficult. What could have started in 1972, is still an issue that cannot be avoided in 2025. At least, if relations with Pakistan are to progress, these matters will inevitably come to the fore. Even if governments try to avoid them, questions may be raised by non-governmental entities, and if avoided entirely, they could emerge in international forums.

A sustainable future depends on justice for the past

In the past, the return of Urdu-speaking people and the issue of war crimes overshadowed Bangladesh-Pakistan bilateral talks. Now that Bangladesh is handling the issue of Urdu speakers on its own terms, Pakistan may come up with positive proposals regarding the settlement of debts. Even if both countries feel embarrassed to discuss these matters directly, they could seek technical assistance from the UN or the OIC.

Such initiatives would speed up potential commercial, diplomatic, and geopolitical cooperation. However, current efforts to normalize relations should not be held back by the division of debts. Bangladesh has already taken steps to import 50,000 metric tons of rice from Pakistan, among other goods, signaling an expansion of bilateral ties.

Nevertheless, any normal relationship requires a transparent understanding of past wrongs. The future’s sustainability depends on past justice. In particular, the international assistance sent to East Pakistan during the November 1970 cyclone, which was not distributed due to the outbreak of war four months later (amounting to nearly $200 million), could serve as an immediate and inspiring precedent for Pakistan.

In recent history, relations couldn't be continued even after elevating bilateral relations with India to great heights due to the unresolved Teesta water-sharing issue. Unresolved economic issues from before 1971 will inevitably resurface in the Bangladesh-Pakistan relationship. People might even wonder: if water-sharing can become an international issue, why not economic debts?

**Altaf Parvez is a researcher on history

**This column appeared in the print and online edition of Prothom Alo and has been rewritten for the English edition by Rabiul Islam​
 
Video talks about the experience of a Pakistani Senior EPR Commander posted to East Pakistan in 1969 and his remembrance of events (especially 1971 election in Bangladesh boycotted by most major parties) prior to and leading up to the crackdown in March 1971. English, Urdu and Bengali close captioning as well as languages spoken.

 
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FBCCI sees big potential in importing fruits from Pakistan
Bangladesh Sangbad Sangstha . Dhaka 22 January, 2025, 23:10

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Federation of Bangladesh Chambers of Commerce and Industry administrator Md Hafizur Rahman and a business delegation from Pakistan are present at a meeting in the capital Dhaka on Wednesday. | Focus Bangla photo

Bangladeshi importers and businessmen see big opportunities and potentials in importing dates, oranges, other fruits and agricultural products from Pakistan to meet the demand throughout the year, including during the holy month of Ramadan.

They also believe that there are huge potentials for exporting various Bangladeshi products to Pakistan.

For this, businessmen from both countries have called for the removal of tariff and non-tariff barriers between the two countries.

These issues came up for discussion at a meeting held between a delegation of the Federation of Bangladesh Chambers of Commerce and Industry and a business delegation from Pakistan in the capital’s Gulshan area on Wednesday.

The meeting was presided over by FBCCI administrator Md Hafizur Rahman. In his welcome speech, he said that there was a huge demand for dates in Bangladesh during the holy month of Ramadan.

Along with this, the demand for other fruits also increases during that time, said an FBCCI press release.

Besides, there is a lot of demand for domestic and foreign fruits on the local market throughout the year.

‘Pakistan can be an affordable and easily accessible source of fruits and agricultural products for Bangladesh,’ said the FBCCI administrator.

Stressing on boosting bilateral trade between Bangladesh and Pakistan, Md Hafizur Rahman said that there was an opportunity to expand trade between the two countries through joint initiatives and mutual cooperation in the private sector.

He also emphasised the importance of completing a Bangladesh-Pakistan trade agreement.

Businessmen from both countries emphasised the development of logistics, supply chain, cold storage, packaging and goods transportation systems to facilitate and expand trade between Bangladesh and Pakistan.

The meeting was attended among others by Zain Aziz, trade and investment attaché of the Pakistan High Commission in Dhaka, Md Zafar Iqbal, head of the international affairs department of FBCCI, FBCCI leaders, members of the Pakistani business delegation, leaders of the Bangladesh Fresh Fruits Importers Association and others.​
 

Bangladeshi, Pakistani traders seek removal of customs, non-customs barriers
United News of Bangladesh . Dhaka 22 January, 2025, 16:18

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Representational image. | UNB Photo

Traders of Bangladesh and Pakistan have called for the removal of customs and non-customs barriers between the two countries to enhance trade between the two countries.

They made the call at a meeting held between the Federation of Bangladesh Chambers of Commerce and Industry and a business delegation from Pakistan in Gulshan on Wednesday.

Bangladeshi traders said they see great potential in importing dates, oranges and other fruits and agricultural products from Pakistan to meet the demand throughout the year including during holy Ramadan.

They also think that there is a potential for exporting various Bangladeshi products to Pakistan.

The meeting was presided over by FBCCI administrator Md Hafizur Rahman.

In his welcome address, he said that there is a huge demand for dates in Bangladesh during the month of Ramadan.

The demand for other fruits also increases during this time and there is huge demand for fruits in the local market throughout the year, he said.

‘Pakistan can be an affordable and easily available source of fruits and agricultural products for Bangladesh,’ said the FBCCI administrator.’

Stressing on the growth of bilateral trade between Bangladesh and Pakistan, Md Hafizur Rahman said there is an opportunity to expand trade between the two countries through joint initiatives and mutual cooperation in the private sector.

He also emphasised the importance of signing a Bangladesh-Pakistan trade agreement.

Businessmen from both countries emphasised the development of logistics, supply chain, cold storage, packaging and goods transportation systems to facilitate and expand trade between Bangladesh and Pakistan.​
 

Pakistan envoy stresses reducing trade gap
Bangladesh Sangbad Sangstha . Chattogram 23 January, 2025, 23:14

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Pakistan high commissioner Syed Ahmed Maruf speaks at a view exchange meeting held between the visiting Pakistani trade delegation and leading businessmen of Chattogram on Thursday. | BSS photo

Pakistan high commissioner to Bangladesh Syed Ahmed Maruf on Thursday stressed promoting business and reducing trade gap between Bangladesh and Pakistan for the benefit of the two countries.

‘There was no alternative to promote trade and economic ties as part of bilateral relations between the two friendly countries,’ he said while speaking at a view exchange meeting held between the visiting Pakistani trade delegation and leading businessmen of Chattogram.

He said, ‘We have no alternatives to improve business-to-business ties to boost the existing relation...Although there is a bilateral trade between Bangladesh and Pakistan, there is a huge trade deficit tilting towards Pakistan which needs to be addressed,’ the envoy said.

The meeting was held at the Conference Hall of World Trade Center with Administrator of Chattogram Chamber of Commerce and Industry (CCCI) and Additional Divisional Commissioner (General) of Chattogram Muhammad Anwar Pasha in the chair.

The high commissioner said Bangladeshi businessmen will have to work actively on how to increase export to Pakistan rather than increasing import from Pakistan.

There has been a significant change in trade relations between

Bangladesh and Pakistan in the last few months, he said referring to the recent introduction of direct shipping links and Bangladesh’s initiative to import 50,000 metric tonnes of rice.

The envoy put emphasis on direct flight operations between Dhaka and Islamabad to improve further the bilateral trade ties. He later, invited Bangladeshi businessmen to visit Pakistan to explore new business opportunities.

Welcoming the Pakistan’s intention to promote trade and economic ties, CCCI Administrator Muhammad Anwar Pasha said no notable products from Bangladesh have exported to Pakistan although we have religious, historical and traditional similarities.

‘Whereas Pakistan is the 19th importing country of Bangladesh and about 700 million dollars worth of products are imported from Pakistan every year’ CCCI chief said.​
 

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