Bangladesh, Pakistan to revive economic ties with new trade, investment commission

Bangladesh’s interim government, on August 21, announced plans to revive its long-dormant Joint Economic Commission (JEC) with Pakistan and set up a new trade and investment commission, as part of efforts to strengthen bilateral trade relations.

The decision came during the visit of Pakistan’s Commerce Minister Jam Kamal Khan, who held talks in Dhaka with Bangladesh’s Commerce Adviser Sheikh Bashir Uddin. Following the meeting, Uddin told reporters that the JEC had remained largely inactive for years, but both sides now agreed to make it operational again.

"We had very intensive discussions. We are working on reactivating the Joint Economic Commission (JEC) and forming a new Trade and Investment Commission," Uddin said.
     
He said the existing JEC between the two countries was not “so operational” over the years and thus both sides agreed to take steps to revitalise it.
     
The adviser said if Bangladesh and Pakistan jointly, or through foreign investment, could produce intermediate goods, it would be mutually beneficial for both the countries.
     
Uddin said Bangladesh imports goods worth USD 80 billion annually, of which USD 15 billion consists of food and intermediate products.
     
"Pakistan has imposed anti-dumping duties on our hydrogen peroxide exports. We have requested the withdrawal of that duty, and they have given assurances. We also sought their support in developing our leather and sugar industries," he said.
     
Uddin said Bangladesh once enjoyed a duty-free quota of 10 million kilograms of tea exports to Pakistan, and Dhaka has requested the reinstatement of that facility as well.
     
"There is ample opportunity to expand trade in these products between the two countries. That is why a new Trade and Investment Commission is being formed," he said.
     
Bangladesh also sought Pakistan's assistance in enhancing domestic sugar production capacity and also invited Pakistani investment in intermediate goods manufacturing.
     
"They (Pakistan) have responded positively to all our proposals, and these issues will be further discussed in the new commission," Uddin said.
     
Asked if Bangladesh was leaning towards Pakistan, the adviser said "we are leaning towards everyone – Pakistan, the United States, even importing onions from India”.
     
"Bangladesh's interest comes first; wherever our national interest lies, that is where we lean," he said.
     
The ties between Dhaka and Islamabad witnessed a low ebb during ousted prime minister Sheikh Hasina’s Awami League government particularly when Bangladesh initiated trials of hardened collaborators of Pakistani troops during the 1971 Liberation War in 2010.
     
The relations between the two countries became warmer after the installation of the Muhammad Yunus-led interim government in August 2024, three days after the ouster of the past regime.
     
Since then, Bangladesh and Pakistan began direct shipping, eased visa and trade regimes and are set to start direct flights.
     
Fly Jinnah secured approval from Bangladesh and another Pakistani airlines operator Air Sial has applied for the approval.
     
Officials said Biman Bangladesh planned to seek Pakistani approval to operate flights between the two countries.
     
A Pakistani business delegation, led by president of the Federation of Pakistan Chamber of Commerce and Industry Atif Ikram Sheikh, visited Dhaka in January this year after 12 years.
     
Separately, Bangladesh on Thursday said it has decided to sign an agreement with Pakistan to allow government officials and diplomats from both sides to visit each other’s country without visa for five years. The Pakistan government has already approved it.