Working up to Pakistan-Bangladesh Free Trade Agreement - a Need of the Day

[UKBengali]

I think this is an excellent idea.

BD can export electronics(Walton etc) and ships to Pakistan and in return should be able to take Pakistani cotton and agricultural products.


Have targets like 1 billion US dollar trade by 2025 and 5 billion US dollars by 2030 would be useful and a marker of where the two countries should be in terms of their trading relationship.

Indians will jump up and down as they do not want BD and Pakistan to have good relations but this is none of their business.

 

[mmr]

Under what context you are using vulgar words criticizing Pakistan?

BD has borrowed $7 billion from foreign sources in 2020 and paid back an arrear of $1.93 billion in the same year.

A day will soon come when BD will receive $7 billion credit in a certain year and will pay back $7 billion in arrear.

When it happens the value of Taka will fall, maybe to $1.00 = Tk120.00. When this happens BD economy will also look smaller similar to Pakistan's.

So, it is wiser not to use hard words against Pakistan or other countries. "Pot calling the kettle black".

Bd taka is artificially inflated we all know that. Once its adjust to market rate economy economy will look lot smaller. Unless bd increase export and diversity now...after few years when all these infrastructure completed russia for example will ask for pay back 12 billion us dollar...and bd will face intense presure and currency value will definitely go down.

And honestly bd is going that way since it still failing to increase its export beyond making clothes.

 

[RAMPAGE]

Although the video is rather dull and the presenter lacklustre, he makes an important point, the need for strengthening trade relations between Pakistan and Bangladesh. Most recently, sections of Pakistani media have made the case of exporting cotton to Bangladesh by lowering tariff on Pakistani Cotton (as opposed to Indian Cotton) and that of lowering Pakistani tariffs for Bangladeshi imports (such as appliances and electronics) to Pakistan in return.

Also on the Bangladeshi wishlist is using port of Gwadar for exports/imports to/from land-locked Central Asian republics and parts of China nearby such as Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan, Tajikistan etc. (including Cotton and Minerals). I'm sure our chambers of commerce will be very happy to set up intermediate processing in Pakistan itself (via investments) to serve these markets.

There is no direct Chittagong to Gwadar or Chittagong to Karachi sea-link currently, which also needs to be inked by bilateral MOU and agreement.

Most of the video outlines Urdu narrative, which my limited comprehension thereof disallows, but I do get the gist.

No free-trade agreements with anyone, please. Best hold extensive negotiations to agree on mutually benefitting avenues for trade.

 

[Maula Jatt]

I think this is an excellent idea.

BD can export electronics(Walton etc) and ships to Pakistan and in return should be able to take Pakistani cotton and agricultural products.


Have targets like 1 billion US dollar trade by 2025 and 5 billion US dollars by 2030 would be useful and a marker of where the two countries should be in terms of their trading relationship.

Indians will jump up and down as they do not want BD and Pakistan to have good relations but this is none of their business.

Agricultural products won't cut it imo, too low value would create a deficit

Need to give access to Auto parts, minerals, ev and seeing a growth in the wider green market too

These industries I mentioned probably won't hurt Bangladeshi businesses as they haven't properly explored these sectors

 

[UKBengali]

Agricultural products won't cut it imo, too low value would create a deficit

Need to give access to Auto parts, minerals, ev and seeing a growth in the wider green market too

I think you underestimate the size of the BD food market.

It has a population of 165 million and an economy of 350 billion US dollars growing at 7-8% a year.

Pakistan can easily even now export hundreds of millions of US dollars into the BD food market and this will grow rapidly in areas like meat etc.

Minerals are ok but the others will be a no-go area for now.

 

[mb444]

Under what context you are using vulgar words criticizing Pakistan?

BD has borrowed $7 billion from foreign sources in 2020 and paid back an arrear of $1.93 billion in the same year.

A day will soon come when BD will receive $7 billion credit in a certain year and will pay back $7 billion in arrear.

When it happens the value of Taka will fall, maybe to $1.00 = Tk120.00. When this happens BD economy will also look smaller similar to Pakistan's.

So, it is wiser not to use hard words against Pakistan or other countries. "Pot calling the kettle black".

In the context of Bangladesh.... our export basket does not contain much that Pakistan will buy given their para-tarrif barriers against BD products.


As such our effort should be where it is likely to bear fruit. Everything else i said I stand by.

Like Pakistan is looking more closer to the central Asian states.

As it should... every country must explore and exploit opportunities that best serves its needs.

 

[UKBengali]

@Sainthood 101


Here is the BD top 10 imports from 2020:

Bangladesh's Top Imports 2022

Bangladesh's biggest imports in 2022 were led by processed petroleum oils, iron or steel scrap & raw cotton

www.worldstopexports.com

As you can see Cotton is No.1 at nearly 5 billion US dollars.

Cereals are at 1.7 billion US dollars?! Does Pakistan have any products in this categoty as capturing just 20% of BD market will be 340 million US dollars per year

Now as I have said you also have to look at the fast growing BD economy of 7-8% a year and all economic forecasters expect this to continue up to 2035.

I think Pakistan has more of a chance now as Modi's ban on the UK AstraZeneca vaccine exports has highlighted just how unreliable and frankly immoral that India is. BD will accelerate its dependence away from India for as much products as possible and this gives opportunities for others like Pakistan.

This is a good thread and BD and Pakistan need to start trading for mutual benefits first and then we can obviously move into areas like military co-operation. BAF can learn a lot from PAF as a good example in the military arena.

 

[KaiserX]

PAK-BD free trade agreement is the need of the day. Both nations have cultural, political, religious, and historical links,

Many pakistanis know about our linkages with Afghanistan/Central asia, but most forget that we have just as much linkages with Bangladesh. Many of the people (biharis, pathans, sindhis, etc...) are still in BD today (you will find many people with the surname Khan or Chaudhry) and likewise you will find millions of bengalis in Pakistan (especially karachi and northern punjab) And the religious links are apparent with the Sufi shrines and todays Jamaat movement.

Sure Delhi is closer to Dhaka than lahore, but dont forget that geography wise people have traveled from lahore to dhaka for thousands of years via a direct road route (plains and lack of mountains in the middle). Meaning geography wise we are closer to bengal than we are to afghanistan (being seperated by the hindu kush) or China (being seperated by the mighty himalayas).

 

[313ghazi]

Wherever we can we should make trade agreements giving preferential tarrifs on specific goods. It's in benefits of both nations and should not be limited to Bangladesh. We should look to do the same with as many countries as we can.

 

[N.Siddiqui]

Surprise!!! When BD has the Walton group....

Dawlance to export microwave ovens to Bangladesh: Razak Dawood

* He was chairing an internal review meeting to discuss the finalization of Strategic Trade Policy Framework (STPF), at Commerce Division, said a press release.

www.brecorder.com

Trade is in Pakistan favor substantially...

While giving a breakdown of exports and imports of the past five years, the minister told the parliamentarians that both the countries had a total trade of $700.39 million in 2019-20, wherein Pakistani exports amounted to $654.79 million and import from Bangladesh stood at $45.60million.

Pakistan-Bangladesh ties: more than meets the eye | The Express Tribune

Media landscape has been rife with speculations about a new political alliance

tribune.com.pk

 

[mb444]

Oh boy you need schooling on FTA's...
A- You need FTA's for cheaper imports too...
Ban needs cheap cotton to get that you're probably not going to the gcc, eu.... Lol

You go to central Asia or some other cotton exporters- look through cotton exporters and I think majority are not devoloped countries, same with cheaper gas, minerals that Ban doesn't produce any of its own but needs

2- There's a reason Indians put tarrifs
cause our nations are almost similar in our development stage, like India, Pak has its own textiles, Why would they want other nation to compete in thier market, same issues with other markets (like pharma, IT, auto,ev, electronics)

Ofcourse India produces the most sophisticated stuff and then Pak, then Bangladesh (I think someone shared a graph)

But by and large difference isn't that huge so tariffs are needed - exactly why you need FTA'S there's no way Pak will make its own ships while Ban does

So that country would be more then happy to remove tariffs on that product as it's in Thier intrest, in return Ban will reduce tariffs on Pak minerals

This is why FTAs are needed grown ups look at thier situations and figure stuff out

And as far as poor countries, I genuinely don't know this phenomenon

If someone's per capita increase just couple $100 in SA why do the country men start chimping out over it

Like Indians chimp out now your lot are chimping out, Pak had the highest in the region throughout history I believe till 2000s
So ofcourse I don't know how Paksitanis back than felt about it

But hopefully keeping with tradition they chimped out too

No you GDP over the the course of history was higher than BD for a little bit intermittently.... only your pomposity allows you to believe otherwise...simple internet search would rectify that fallacy.

I am old enough to remember pakistanies telling everyone how you are richer than everyone in S. Asia and how you are really central asians....

I dont see why you should begrudge other south asians the same opportunity to meet out insults that you subjected others to

 

[mb444]

Are you serious lol.

And you really think eu and us will sign free trade with bd lol? Not gonna happen. What will they get in return? Bd dont have much to offer to western countries. Economy is still too small and not to mention bd is one of the poorest County in the world. Consumption is very low specially to western products. Bd cant afford french cheese or british biscuits lol. Or any thing European has to offer.

There is no free lunch. No one want a free trade deal with a country which only sell underwear.

Why wont they.... EU signed with vietnam...

EU will want uninterrupted access to BD market of over $300bn and growing..... they will want access to our capital markets which is shut.. they will want to come and trade here.. they want our overseas students... BD is connected to the global logistics flow.... at the moment being of LDC designation we are not impacted by barriers that a developing nation face. Moment of graduation those issues becomes real and BD will mitigate.

There is absolutely no one globally wants BDs economic progress to falter following LDC graduation. FTA/PTAs are natural and logical progression as BD does not have a regional forum to advance free trade. Our trading partners have every reason to cooperate.

 

[Deltadart]

Under what context you are using vulgar words criticizing Pakistan?

BD has borrowed $7 billion from foreign sources in 2020 and paid back an arrear of $1.93 billion in the same year.

A day will soon come when BD will receive $7 billion credit in a certain year and will pay back $7 billion in arrear.

When it happens the value of Taka will fall, maybe to $1.00 = Tk120.00. When this happens BD economy will also look smaller similar to Pakistan's.

So, it is wiser not to use hard words against Pakistan or other countries. "Pot calling the kettle black".

With few bucks in their kitty even these chi*ps are throwing a Bravado around. Shame on our people for not seeing other countries as competitors and hostile to our nation vs seeing them as Muslim umma, well I will leave it at that.
We should have nothing to do with their lot.

 

[mb444]

Bd taka is artificially inflated we all know that. Once its adjust to market rate economy economy will look lot smaller. Unless bd increase export and diversity now...after few years when all these infrastructure completed russia for example will ask for pay back 12 billion us dollar...and bd will face intense presure and currency value will definitely go down.

And honestly bd is going that way since it still failing to increase its export beyond making clothes.

BD definately has a lot of challenges ahead.

Thankfully we have low debts, high reserves, reasonable credit rating so able to absorb certain amount of shocks.

There is no reason to be complacent or fear the future.

 

[Bilal9]

These 2 things maybe add leather goods but especially ships,I see massive demand in Pak market for it,

like competitive and good quality ships is something that Pak desperately needs as government isn't focusing on making that sector into a proper industry

Other than that I don't think Ban should lift a whole lot of tariffs on light engineering as Ban industry is still building, introducing a competitor at this stage is bad

Like my uncle has a light engineering factory for decades where auto parts etc are produced (in fact gov is incentivizing this industry to turn it into a proper export industry- so maybe if ban is not looking to grow this market that's another in)

If you introduce these established businesses it'll be hard for Ban light engineering to compete as they need experience in domestic Market to hone in Thier craft

Well Bangladesh light engineering sector to date has not geared up producing auto parts, it is mainly concentrating on exporting low and midgrade bicycles (not $3000 bikes) to EU and filling local demand for motorcycles. Indian HERO, TVS and Bajaj have local assembly plants. But auto parts demand is mainly met by imports from China. There is certainly scope of business here - even local parts manufacture and investments. The fact remains that Bangladesh govt. provides incentives in this sector too. There is huge demand for three wheelers - which are mainly met by imports from China. Pakistani exporters can utilize this gap.

Bangladesh shipbuilding is of course very active since Mughal times and during Pakistani era, large investment's were made locally. Local ocean-going builds have been getting larger and more sophisticated especially with private yards' involvement. Bangladesh has insane amount of formal and informal yards for both riverine and ocean-going builds, sometimes set up in the middle of a char (river island) to build large local riverine Passenger Ferries, capable of carrying up to 4000~5000 passengers and ranging in luxury from plebeian to super-luxe.

I am sure there is plenty of trade between Gwadar/Karachi to gulf ports and Bangladeshi coasters like these could come into good use.

Images below of one of the more prominent yards in Chittagong and their products.