Pakistan-Bangladesh Trade Agreement: 50,000 Tons of Rice Deal and Its Impact on India.
Bangladesh and Pakistan have signed a historic trade agreement for the first time since Bangladesh's independence in 1971. Under this deal, Pakistan will export 50,000 tons of rice to Bangladesh in two phases by early March. This agreement marks a significant shift in regional trade dynamics and could impact India's rice exports to Bangladesh, which have traditionally dominated the market. The growing ties between Bangladesh and Pakistan raise strategic concerns for India, especially amid strained India-Bangladesh relations.
Dhaka: Bangladesh separated from Pakistan in 1971, becoming an independent nation. Now, after 54 years, the relationship between Pakistan and Bangladesh is growing closer. In this context, a significant agreement has been signed between the two countries for the first time. What is this agreement, and how will it impact India?
During Sheikh Hasina's tenure as Prime Minister, Bangladesh maintained strong ties with India. However, in August last year, following student protests, Sheikh Hasina resigned and sought refuge in India.
Currently, Bangladesh is under an interim government led by Chief Advisor Muhammad Yunus, who has adopted an opposing stance towards India, causing the bilateral relationship to deteriorate to an unprecedented low.
While opposing India, Muhammad Yunus has strengthened ties with Pakistan. Despite Pakistan being the nation from which Bangladesh gained independence in 1971—with significant support from Indian soldiers—Yunus has chosen to align with Pakistan.
For the first time in 54 years, military officials from both Pakistan and Bangladesh have exchanged visits. Pakistan is now set to provide military training to Bangladesh’s forces, which raises concerns for India.
Amid these developments, a major trade agreement has been signed between Bangladesh and Pakistan. This is the first direct trade agreement since Bangladesh’s independence in 1971. Under this deal, Pakistan will supply Bangladesh with 50,000 tons of rice, delivered in two phases of 25,000 tons each, to be completed by the first week of March.
The trade deal, finalized earlier this month, was signed between the trade corporations of both nations. The first shipment is expected to be dispatched soon from Pakistan’s Port Qasim.
According to The Express Tribune, "A cargo ship owned by the Pakistan National Shipping Corporation will soon transport rice to Bangladesh, marking a new milestone in maritime trade between the two nations."
Historically, India has been the primary rice exporter to Bangladesh. In 2023 alone, India exported rice worth $83.18 million to Bangladesh. Despite tensions, by December 2024, India had exported 200,000 tons of rice. Now, with Bangladesh importing 50,000 tons from Pakistan, this new trade route could potentially impact India’s rice exports to Bangladesh.
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