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

[Lulldapull]

I thought China already invested $46 billion in CPEC, no?

$26 billion thus far. China has stopped any further investments because we are having trouble paying the dues on the $26 billion.

 

[ThunderCat]

I thought China already invested $46 billion in CPEC, no?

Perhaps. And CPEC is no fault of theirs. Foolish Pakistanis wanted it, without considering the environmental consequences.

 

[Saif]

$26 billion thus far. China has stopped any further investments because we are having trouble paying the dues on the $26 billion.

Bhai, doesn't the project aim to address electricity shortages, develop infrastructure, and modernize transportation networks for Pakistan? Ask China to extend the loan payment date so that Pakistan doesn't default on the loan payment.

 

[Lulldapull]

Bhai, doesn't the project aim to address electricity shortages, develop infrastructure, and modernize transportation networks for Pakistan? Ask China to extend the loan payment date so that Pakistan doesn't default on the loan payment.

We needed 10 new power plants and 5 new hwys. Instead we got railroaded with 20 new power plants and 15 new hwys, which is way beyond our capacity to afford. Gwader needed development but that was a mere $2 to $3 billion on project expenditure. Now we couldn't afford all this new infrastructure, but China forced it down our throats because we didn't have neither competent nor empowered bureaucrats making these decision on contract formation more than a decade ago.

You understand what's happened here no?

 

[ThunderCat]

Bhai, doesn't the project aim to address electricity shortages, develop infrastructure, and modernize transportation networks for Pakistan? Ask China to extend the loan payment date so that Pakistan doesn't default on the loan payment.

Solar would be the best way to go about these shortages.

 

[Saif]

Solar would be the best way to go about these shortages.

I think Pakistan needs solar, coal, nuclear and gas to remedy the shortages of electricity. You cannot depend on only one source to remedy your electricity problem. You need multiple sources.

 

[ThunderCat]

I think Pakistan needs solar, coal, nuclear and gas to remedy the shortages of electricity. You cannot depend on only one source to remedy your electricity problem. You need multiple sources.

It depends on a lot of variables. In the case of most of Pakistan's landmass, solar is best & most sustainable.

 

[Saif]

Promoting trade ties with Pakistan

When the newly independent Bangladesh completed all the necessary formalities to join the General Agreement on Tariffs and Trade (GATT) in November 1972, an objection was raised by Pakistan at the multilateral trade forum. The memory of the fateful defeat of the country in the war against its then-

thefinancialexpress.com.bd

Promoting trade ties with Pakistan
Asjadul Kibria
Published :
Oct 19, 2024 21:55
Updated :
Oct 19, 2024 21:55

When the newly independent Bangladesh completed all the necessary formalities to join the General Agreement on Tariffs and Trade (GATT) in November 1972, an objection was raised by Pakistan at the multilateral trade forum. The memory of the fateful defeat of the country in the war against its then-eastern wing in 1971 was fresh. For Bangladesh, the war, imposed by Pakistan, was primarily a fight for its survival and self-defence, which later turned into a war of independence for obvious reasons. Thus, Bangladesh emerged as a sovereign nation on December 16, 1971.

Access to GATT, the predecessor of the World Trade Organization (WTO), as a contracting party, was crucial for the newly born country. Within a year, it became a reality, and Bangladesh became a contracting party or a member on December 16, 1972. The decision to give accession to Bangladesh as a contracting party was finalised on November 10, 1972. Immediately after the decision, Pakistan officially informed the GATT secretariat that it had decided to invoke Article XXXV of GATT concerning Bangladesh. This means that Pakistan would not go for any trade negotiation or trade preference arrangement with Bangladesh under the framework of GATT. To put it another way, it was a protest from Pakistan, though the move could not block Bangladesh from joining the multilateral forum of international trade negotiation and rule-making.

Two years later, in January 1975, Pakistan withdrew the invocation by accepting the Protocol for the Accession of Bangladesh to the GATT. Earlier, in 1974, Pakistan also agreed to recognise Bangladesh as an independent country, leading to establishing bilateral diplomatic relationships. It also opened the path of bilateral trade.

Nevertheless, bilateral trade between these two countries has yet to achieve optimal momentum for various reasons. The common memberships in two regional trade agreements - South Asian Free Trade Area (SAFTA) and Developing Eight Preferential Trade Agreement (D-8 PTA) - play a little role to enhance the economic ties among them. Bangladesh-Pakistan bilateral trade reached at US$782 million in fiscal year 2022-23 (FY23) with trade balance in favour of Pakistan.

Geo-politics is a critical barrier to advancing bilateral trade, especially in the last one and half decades when the Hasina regime was heavily tilted toward India. It drove Bangladesh to downgrade its bilateral relationship with Pakistan persistently. The ousted government, however, tried to use Pakistan's unwillingness to formally seek an apology for the atrocities in 1971 as the cover. In 2016, Bangladesh followed the Indian path and decided not to join the SAARC Summit in Pakistan. The reason was cited as 'interference in internal affairs' indicating Pakistan's protest to the execution of Jamaat-e-Islami leaders found guilty of war crimes in 1971.

The troubled bilateral relationship has cast a shadow on trade ties, with the Hasina-regime imposing a number of non-tariff barriers (NTBs) on importing Pakistani products. This has led to all consignments from Pakistan being selected for 100 per cent manual inspection, a process that significantly hampers trade efficiency. The recent decision by the interim government to scrap the mandatory physical inspection is a step in the right direction.

Bangladeshi exporters also face various NTBs in Pakistan. That's why exports to Pakistan are still below $100 million. It was only in FY22 when exports to Pakistan crossed $100 million. It came down to $84 million in FY23 and further declined to $54 million in FY24. Despite some demands for clothing and pharmaceutical products, Bangladesh is yet to tap the market potential due to various NTBs and a lack of marketing. The main exportable item from Bangladesh is 'vegetable textile fibres', which is around two-fifths of the total exports. Again, there is a demand for raw jute.

There are some tariff barriers also as the ad valorem equilibrium tariff applied by Pakistan on products originating from Bangladesh ranges from 2 per cent to 59 per cent, with an average rate of 7.8 per cent, according to an analytical note prepared by Karachi-based Pakistan Business Council (PBC). The anti-dumping duty imposed by Pakistan on hydrogen peroxide manufactured by Bangladeshi companies is also a contentious issue in the bilateral trade.

Another problem is the need for direct shipment of goods between the countries. Pakistan's export cargo is trans-shipped via Singapore or Colombo to Chittagong. It is, however, a long practice since the discontinuation of the route many years ago. Pakistan International Airlines (PIA) suspended its flight operations to Bangladesh in 2015, breaking the only direct physical connection between the two countries. So, both exports and imports have become costlier. Businessmen on both sides also face stringent visa rules primarily 'motivated by political bias and improper considerations'.

Import from Pakistan is much higher as the country was the 19th import source of Bangladesh in FY23. Imports of goods from Pakistan stood at around $700 million in the year under review, which was one per cent of the country's total imports. However, imports from Pakistan are heavily concentrated as cotton accounts for 80 per cent of total imports. Pakistani fibre and textile are also on the list, along with some other products. Due to some strict regulations coupled with excessive import tariffs, Pakistani textiles and clothing enter Bangladesh through a third country, Dubai to be precise.

As a growing economy with a booming consumer base, Bangladesh is not just a potential market, but a market with significant growth potential for Pakistani goods. Pakistan, on the other hand, is a competitive source of various raw materials and intermediate goods for Bangladesh. The potential for growth is further underscored by the fact that Pakistan could be a growing market for some Bangladeshi products like jute and pharmaceutical items. The resumption of Dhaka-Karachi direct flights may also open competitive air connectivity to the Middle East, further fuelling this growth. Therefore, the exploration of trade cooperation between Bangladesh and Pakistan with a focus on removing undue barriers should be considered seriously.​

 

[Saif]

Ship from Karachi port: What was in the cargo?

Most of the cargo that arrived from Karachi contained industrial raw materials, including soda ash, dolomite, limestone, chemicals, onion, fabrics and potatoes

www.thedailystar.net

Ship from Karachi port: What was in the cargo?

Chittagong Port. File photo: Star

A container shipping service was introduced last week, connecting six countries and facilitating a direct shipping line between Pakistan and Bangladesh for the first time.

The service offers significantly reduced transport times by doing away with the need to stop at transhipment ports, shipping agents and port users said.

Dubai-based container ship operator Feeder Lines DMCC introduced the service, deploying the only vessel, named "Yuan Xiang Fa Zhan".

The vessel started its voyage from the Port of Jebel Ali in Dubai and went to the Port of Karachi. It then set sail for Chattogram port, arriving in the port city on November 11.

According to data from Chittagong Port Authority (CPA), the vessel discharged 370 TEUs of import laden containers at Chattogram, of which 297 TEUs (Twenty Foot Equivalent Unit) came from Pakistan and the remaining 73 TEUS from the UAE.

Most of the cargo that arrived from Karachi contained industrial raw material, including 115 containers of soda ash, 46 containers of dolomite, 35 containers of limestone, 24 containers of chemical, 42 containers of onions, 13 containers of fabrics and 14 containers of potatoes were among the goods imported.

Among the total 73 TEUs that came from UAE, 13 TEUs of containers were carrying rough marble blocks that are used as building construction materials. Other cargo from UAE port included gypsum plaster, copper wire, motor parts and food items like raisin, dry plums, fresh dates, and different varieties of fruit juice.

One container carrying 944 cases of whiskey, vodka and wine was also among the containers imported from UAE.

A total of 52 Bangladeshi importers brought over the cargo from the two countries, totalling over 7,800 tonnes.

Akij Glass Industry Limited imported 65 containers of limestone and dolomite while Nasir Float Glass Industries Ltd imported 30 containers of dolomite and soda ash and Sharif Enterprise brought 14 containers of soda ash.

Pacific Jeans imported one container of twill fabrics and Square Pharma imported one container of fire safety equipment for its manufacturing unit.

The vessel departed for Indonesia on November 12.

However, Chittagong Port Authority (CPA) Secretary Md Omar Faruk said it was not a direct shipping service between the two countries.

"The vessel originally sailed from the UAE and stopped at Karachi on the way to Chattogram and other ports," he added.

In a press release issued on November 13, the Pakistan embassy in Bangladesh hailed the introduction of the service, saying it marked the first-ever direct maritime link between the two countries.

The Pakistan High Commission in Bangladesh posted the press release on its Facebook page the same day.

The route promises to significantly streamline supply chains and reduce transit time, the release said, adding that the vessel's voyage highlights growing demand for direct trade between Bangladesh and Pakistan.

Pakistan's High Commissioner to Bangladesh Syed Ahmed Maroof termed it a major step forward in enhancing bilateral trade and business ties between the countries.

He added that the initiative would not only accelerate existing trade flows, but also promote new opportunities for businesses on both sides, from small traders to large exporters, the release added.

According to the schedule, the vessel will sail from Jebel Ali in Dubai to Karachi. It will then go to Chattogram followed by the Port of Belawan in Indonesia, Port Klang in Malaysia and Mundra Port in India before heading back to Dubai.

Regensea Lines Ltd, a concern of Karnaphuli Group, owned by former environment, forest and climate change minister and Awami League lawmaker Saber Hossain Chowdhury, is the local agent of the ship.

A senior official of the Karnaphuli Group, on condition of anonymity, estimated that the total time to cover the route would be around 42 to 50 days.

The official said different types of cargo, mostly fruits and fabrics, are imported from Pakistan and that such containers are currently brought via transhipment ports in Colombo or the UAE.

Mentioning that Bangladesh also imports from the UAE, the official said imports from Pakistan can be transported to Chattogram directly through this service.

A small number of containerised cargoes are regularly imported from Karachi through transhipment ports of Colombo, said a freight forwarder.

He added that the introduction of this service would reduce the transport time by at least a week.

Bangladesh Shipping Agents Association (BSAA) Chairman Syed Mohammad Arif said jute was frequently exported from Chattogram to Karachi in containers through transhipment ports even 20 years ago.

However, he said such exports had dropped in line with a decline in jute production over the past two decades.

The vessel left with 290 TEUs of export containers, comprising 289 TEUs of empty containers and one TEU laden container. Of these, 18 TEUs of empty containers were bound for Indonesia while the rest were destined for the Malaysian port.​

 

[Vsdoc]

That is why Saudi and UAE supports Israel against Iran. Iran hangs Sunni clerics saudi beheads shias.

And both treat subcontinent Muslims like trash. In the face of favoured treatment of Indian Hindus.