In that same timeframe, imports from India fell by nearly 9.5 percent. Analysts indicate that Bangladesh is enhancing its diplomatic and trade relations with Pakistan because of the evolving political landscape, whereas ties with neighboring India have grown slightly more distant. This change is visible in the import data from the two nations.
Bangladesh mainly imports raw materials for the garment sector, chemicals, glass industry inputs, crushed glass, plastics and rubber, minerals, and different consumer products such as onions and potatoes from Pakistan. As reported by Bangladesh Bank, during the first quarter of the current fiscal year, imports from Pakistan reached 179.4 million dollars. During the same timeframe of the last fiscal year (2023-24), imports totaled 141 million dollars. This represents a 27.23 percent rise in imports from Pakistan from the previous year.
Concurrently, there has been a little reduction in imports from India. During the initial quarter of the present fiscal year, imports from India reached 2052.1 million dollars. Nevertheless, during the corresponding period of the last fiscal year, the import value was 2267.2 million dollars. Thus, in the first quarter of the ongoing fiscal year, imports have fallen by 9.48 percent relative to the same timeframe last year.
Nonetheless, India continues to be Bangladesh's second-largest import supplier. Following China, Bangladesh purchases the second-largest quantity of goods from India. As per data from Bangladesh Bank (BB), during the 2023-24 fiscal year, India held the second position among the top 20 import sources. Throughout that time, items valued at 9 billion dollars were brought in from India, representing over 14 percent of all imports. The most significant imports originated from China, amounting to over 16.5 billion dollars, representing over 26 percent of all imports. In the last fiscal year, Pakistan was the 20th largest supplier of imported products. The total imports from that nation amounted to merely 627 million dollars, accounting for only 1 percent of overall imports. Nonetheless, with the recent launch of direct cargo ship routes from Pakistan, the volume of imports from that nation is rising.
Former Ambassador M Humayun Kabir thinks trade with Pakistan could have grown sooner. He informed Bonik Barta, "Pakistan possesses numerous products ideal for export." They haven't been able to come until now, but they are arriving now. The visa restrictions imposed between the two nations might have decreased imports from India. Although imports from Pakistan have now risen, the volume of imports from India will remain greater. In the future, demand and supply will continue to be the primary factors affecting commercial relations."
Business leaders say that the drop in imports from India is more associated with the investment climate than political factors. Ashraf Ahmed, the previous President of the Dhaka Chamber of Commerce and Industry (DCCI), informed Bonik Barta, "India's imports largely include machinery and industrial raw materials." Nonetheless, imports have fallen somewhat because of the overall stagnation in the investment climate. However, a significant share of raw materials for the pharmaceutical sector still originates from India. Thus, if there is a supply shortage here, it will cause an important issue. Nonetheless, besides cotton, there are few items brought in from Pakistan. In addition, we do not have any exports to Pakistan. This has occurred due to the limited size of the market in Pakistan, along with a lack of promotion for exports.
Bangladesh's diplomatic relations with Pakistan have also grown relative to the past. This action can be observed in the top government and diplomatic communications tiers. The Pakistani Ambassador to Bangladesh is enhancing interactions with business groups and political figures. Consequently, in the initial week of November, direct container ship links were created between Karachi Port in Pakistan and Chattogram Port in Bangladesh. During that period, a vessel called 'MV Yuan Xiang Fa Zhan' transported containerized cargo from the Karachi port to the Chattogram port. Throughout this period, 370 containers were discharged from the vessel at the harbor, delivering 6,337 tons of merchandise. The vessel is anticipated to reach Bangladesh once more this week. Products from various Middle Eastern nations also arrive in Bangladesh through Karachi port on Pakistani vessels. Taskeen Ahmed, the present President of the Dhaka Chamber of Commerce and Industry (DCCI), informed Bonik Barta, "Lately, trade ties between Bangladesh and Pakistan have been notably reinforced. As trade with neighboring countries declines, a chance has emerged to boost bilateral trade with Pakistan. A positive effect has been observed since the decision to commence shipping and direct flights between the two nations. Bangladesh primarily imports food products and textiles from Pakistan. Furthermore, choices have been made to bring in certain crucial items from Pakistan. This will enhance the economic partnership between the two nations even more. Moreover, if we work to enhance the diplomatic ties between the two nations, our joint economic endeavors will also increase."
Simultaneously, on the fringes of the current D-8 Summit in Cairo, a bilateral discussion took place between the Chief Advisor of Bangladesh's Interim Government, Dr. Muhammad Yunus, and Prime Minister Shehbaz Sharif of Pakistan. They consented to enhance ties between the two nations by boosting commerce and trade and sharing representatives in sports and culture. Before this, Islamabad had shown interest in restarting direct flights between Bangladesh and Pakistan. For this purpose, the nation has formally asked Bangladesh, as stated by the Ministry of Foreign Affairs spokesperson, Toufique Hasan.
Bangladesh and India's relationship is tense due to the minority situation. Recently, tensions between the two countries escalated following an assault on Bangladesh's Assistant High Commission in Agartala. Until now, the visa process with India has not been standardized. The quantity of tourists journeying from Bangladesh to India has also dropped notably.
When asked about enhancing trade ties between Bangladesh and Pakistan, Pakistan's High Commission in Dhaka informed Bonik Barta, "Between July and October this year, exports from Pakistan to Bangladesh rose by nearly 30 percent compared to the previous year. This favorable shift underscores the increasing trend in business relations. We are optimistic that this drive for advancement in commerce and trade between the two nations will persist."