KARACHI: With bilateral trade below $1 billion, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is leading an exporters’ delegation to Bangladesh this week to enhance trade relations.
The delegation will meet Bangladesh Chief Adviser Dr Muhammad Yunus and Commerce Adviser Sheikh Bashir Uddin.
FPCCI President Atif Ikram Sheikh, who will lead more than 35 business people of diverse industries, said that the Pakistani business community could achieve substantive
milestones through economic diplomacy, which seems difficult vis-à-vis political diplomacy. “Countries and the regions come closer in today’s world through forging interdependencies that result in wealth creation and prosperity for their respective populations,” he remarked.
BD envoy hopes bilateral trade can easily be increased to $2-3bn
Deputy High Commissioner of Bangladesh Mahbubul Alam held talks with the FPCCI leadership on Tuesday and discussed the activities and scope of the delegation’s Bangladesh visit.
He extended his full support in expeditious visa issuance and facilitation to genuine Pakistani businessmen for trade promotion activities.
Mr Alam said that bilateral trade is a mere $800 million between the two countries, which can easily be increased to $2-3bn within years if both countries can explore and realise the respective untapped export potential.
Mr Sheikh explained that bilateral trade with Bangladesh can be enhanced quickly due to the complementary nature of our economies and major exports.
It will create a room for industrial collaborations, joint ventures, transfer of technology, business-to-business (B2B) and chamber-to-chamber engagements and collective trade promotion activities.
FPCCI Senior Vice-President Saquib Fayaaz Magoon said the delegation will also visit the Dhaka International Trade Fair (DITF) to explore avenues of cooperation besides participating in the Pakistan-Bangladesh Business Forum to be organised by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) on Jan 13.
He said electronics, cars, industrial machinery, carpets, toys, ceramics, sanitary products, handicrafts, fabrics, ready-made garments, leather, home appliances, processed foods, furniture, plastic goods, jute products, cosmetics, sports goods and jewellery are some of the major sectors that display their products at the month-long DITF.
Untapping export potential
In the last week of December 2024, Commerce Minister Jam Kamal stated that Bangladesh is also interested in Pakistani rice and vegetables, while flights between the two countries would also resume.
Commenting on this, Pakistan Fruits and Vegetables Merchants, Exporters and Importers Association Patron-in-Chief Waheed Ahmed told Dawn that after a political change, importers of Bangladesh have been continuously contacting local counterparts to enhance imports of Pakistani vegetables and fruits.
He stated that Bangladesh imports Indian onions when they are cheaper. “When the price of Indian onions rises, we anticipate receiving more export orders from Bangladesh,” he mentioned.
He recalled that Pakistani onions had found their way into Bangladesh in 2024 when India had imposed an export ban. Onion exports were also made in 2022, while no shipments were made in 2023. However, the volume of exports was low.
In fruits, he said low volumes of local kinno and apple shipments were also sent in 2024 and were previously shipped in little quantities.
Mr Waheed pointed out that kinno, apple, dates, mango, grapes and onion have vast export potential to Bangladesh.
“I have asked the government to lead an official delegation to Bangladesh and hold talks for boosting trade volume in vegetables, fruits, packed food items, fruit juices and spices,” he said, adding that it takes two to three weeks for local shipments to reach Bangladesh.
“I see a bright future of trade between the two countries in the current year if both the governments sit together and identify sectors of improving trade volume beneficial for each other,” Waheed said.
Rice Exporters Association of Pakistan chairman Malik Faisal Jahangir said that exports to Bangladesh could earn $200 million in foreign exchange annually.
“Bangladesh accounts for less than 2pc of our total rice exports,” he said, adding that efforts are being made to enhance the share.
He said some problems have emerged in the procurement of rice by Bangladesh from India. Previously, India provided rice to Bangladesh at competitive prices by road, while Bangladesh imported rice from Thailand.
He said the Trading Corporation of Pakistan had received around 11 bids for the supply of 50,000 tonnes long grain white rice (Irri 6 rice) to Bangladesh in response to a global tender issued on Dec 31, 2024.
“50,000 tonnes of Irri-6 rice will fetch $24-26m,” he said.
Published in Dawn, January 8th, 2025
