Pakistan and Bangladesh Initiate Direct Rice Trade
In a significant development, Pakistan and Bangladesh have commenced direct government-to-government trade, marking a new chapter in their bilateral relations.
This initiative begins with Bangladesh importing 50,000 tonnes of rice from Pakistan, as confirmed by Ziauddin Ahmed, a senior official at Bangladesh’s food ministry. He stated, “For the first time we are importing 50,000 tons of rice from Pakistan, and it is the first government-to-government deal between the two countries.”
Strengthening Pakistan-Bangladesh Trade Relations
The thaw in relations follows the ousting of former Bangladeshi Prime Minister Sheikh Hasina in August 2024. Her departure led to a shift in regional alliances, allowing Islamabad and Dhaka to rebuild ties. Direct private trade resumed in November 2024, marked by a container ship sailing from Karachi to Chittagong—the first direct cargo shipment between the nations in decades.
Bangladesh Diversifies Rice Imports
Bangladesh’s Directorate General of Food signed a memorandum of understanding with Pakistan’s state-owned Trading Corporation in January to facilitate rice imports. Ahmed noted that this agreement offers a “new avenue of sourcing and competitive pricing,” diversifying Bangladesh’s rice import sources, which previously included India, Thailand, and Vietnam.
Climate Vulnerability and Food Security
As a low-lying nation, Bangladesh is highly susceptible to climate change impacts, including devastating floods and cyclones. Ensuring a stable rice supply is critical for its population of 170 million. Historically, private Bangladeshi companies imported Pakistani rice indirectly, transshipping through third countries. The new direct trade route streamlines this process, enhancing food security and economic cooperation between the two countries.
This direct trade initiative signifies a positive shift in Pakistan-Bangladesh relations, fostering economic collaboration and regional stability.
