October 28, 2025
DHAKA – Bangladesh and Pakistan yesterday agreed to expand economic cooperation by exploring new trade opportunities and enhancing direct connectivity through shipping links and air services.
The decisions were made at the ninth meeting of the Joint Economic Commission (JEC) held in Dhaka, the first JEC meeting since 2005. The meeting focused on expanding bilateral trade and investment and identifying potential across various sectors.
Salehuddin Ahmed, adviser to the finance and science ministries, led the Bangladesh delegation, while Pakistan’s delegation was headed by Ali Pervaiz Malik, minister for energy (petroleum division).
After nearly two decades, ties between Dhaka and Islamabad have improved following the ouster of Hasina last year.
Jute and jute products account for about 38 percent of Bangladesh’s exports to Pakistan. However, data shows this is declining. Exports totalled around $23 million in FY24, down from $63 million in FY22.
According to draft meeting minutes, Pakistan responded positively to Bangladesh’s request to waive existing customs duties and grant duty-free, quota-free (DFQF) access for Bangladeshi jute, jute products, and agro-products.
The parties also agreed to explore export opportunities for other Bangladeshi products with high market potential in Pakistan, including pharmaceuticals, tobacco, textiles, clothing accessories, tea, plastics, fruits such as pineapple and lychee, and handicrafts, read the draft meeting minutes.
The JEC also discussed cooperation in sectors such as agriculture, energy, research and higher education, banking, tourism, sports, textiles, and climate change, the Economic Relations Division (ERD) said in a statement.
Both sides expressed interest in enhancing connectivity by establishing direct shipping links, expanding air services, and increasing the use of ports and logistics to reduce costs and improve efficiency in bilateral and regional trade, it added.
On the sidelines, the two nations signed a MoU on halal food trade, under which BSTI-certified halal products will be accepted in Pakistan without additional inspection, and vice versa for products certified by the Pakistan Halal Authority (PHA).
They also agreed to promote joint-venture investments in the textile sector, noting that many Bangladeshi garment factories import denim and other fabrics from Pakistan. Several global fashion brands sourcing apparel from Bangladesh often nominate Pakistani fabric suppliers for their orders.
“The parties agreed to encourage such nomination-based cooperation to expand export volumes,” the statement read.
To strengthen connectivity, both sides agreed to pursue direct air services and establish a Joint Working Group on Maritime Cooperation between the Bangladesh Shipping Corporation and Pakistan National Shipping Corporation. Pakistan also proposed that Bangladesh use Karachi Port Trust for trade with China and other regional countries.
“The parties agreed to explore direct shipping links between the seaports of Bangladesh and Pakistan to facilitate faster, cost-effective, and secure movement of goods,” the statement read.
The meeting further discussed collaboration in IT, renewable energy, engineering, and cold-chain logistics.
“All issues will be forwarded to the relevant ministries for follow-up discussions,” Salehuddin said, adding that focal-point officials will be appointed to monitor direct flights and shipping.
He emphasised that the push is not limited to one country. “We have started a new beginning and want to continue this process with other South and Southeast Asian countries… We also want to strengthen SAARC,” he said.
Ali Pervaiz Malik noted that bilateral trade remains below $1 billion but expressed optimism about future growth. “We aim to enhance trade in ways that support each country’s key industries. Jute will remain the mainstay, but we are also exploring cooperation in agriculture, pharmaceuticals, and other sectors,” he told reporters.
Both sides welcomed the Pakistan-Bangladesh Knowledge Corridor, which offers 500 scholarships to Bangladeshi students to promote academic exchange and research collaboration.
The next JEC meeting will be held in Islamabad at a mutually convenient time, the ERD statement added.