Pakistan and Bangladesh resume direct trade after 50 years

Bangladesh has resumed direct trade with Pakistan for the first time since its independence in 1971, as diplomatic relations has improved under the interim government in Bangladesh led by Nobel laureate Muhammad Yunus.

The first shipment of 50,000 tons of rice has left Port Qasim under a government-to-government deal.

The new agreement, finalized earlier this month, sees Bangladesh purchasing white rice from Pakistan at $499 per ton through the Trading Corporation of Pakistan. The shipment will be delivered in two phases, with the remaining 25,000 tons expected in early March.

However, the price of rice is higher than that of rice from Vietnam, which Bangladesh has been importing at $474.25 per ton.

To control rice prices, the government is importing more rice from international markets, including through tenders, and has scrapped import duties.

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It is worth mentioning that Bangladesh, previously known as East Pakistan, won independence following a nine-month war.