EDITORIAL: With the ouster of Sheikh Hasina’s government from Dhaka earlier in the year, the intervening months have seen a steady improvement in relations between Pakistan and Bangladesh.
This was very much in evidence during the meeting between Prime Minister Shehbaz Sharif and Bangladesh’s interim leader Dr Muhammad Yunus on the sidelines of the D-8 summit of developing nations in Cairo on December 19, where the respected Nobel laureate expressed a keen desire to move on from the painful events of 1971 and turn the page on a relationship marked by historical grievances.
It is imperative that nothing should now hinder the enhancing of our bilateral economic, trade and sociocultural ties, long afflicted by historical tensions and fractious regional politics.
Recent positive developments, including the Bangladeshi waiver of the condition of 100 percent physical inspection of consignments from Pakistan, the abolishment of the special security desk at the Dhaka airport that scrutinised Pakistani passengers and a vessel from Karachi docking at the Chittagong port recently – the first-ever direct maritime trade connection between the two countries in 53 years – signal a welcome, gradual normalisation of relations.
The 15-year rule of Sheikh Hasina, marked by Dhaka’s strong proclivity for India and the former prime minister’s own seemingly deep-seated bias against Pakistan, had led to, at times, highly strained relations. This had a significant fallout on bilateral trade and investment ties, which never reached their true potential.
According to a 2022 report by the Pakistan Business Council, Pakistan’s exports to Bangladesh decreased from USD 947.23 million in 2011 to a measly USD 583.44 million in 2020, while imports from Bangladesh dropped from USD 82.73 million to USD 61.94 million in the same period. And while these figures have improved since then, there remain significant gaps in realising the full scope of economic cooperation.
This theme of unrealised potential also extends to the broader SAARC region, where intra-regional trade volumes remain criminally low, undermining the economic prospects of billions across South Asia. As highlighted recently at a meeting of the SAARC Chamber of Commerce and Industry, intra-regional trade accounts for just five percent of the total trade of the region. In contrast, other trading blocs, such as NAFTA with 40 percent and ASEAN at 27 percent, perform far better, highlighting the urgent need for concerted efforts to boost intra-regional trade and unlock the full economic potential of South Asia.
It is no secret that the major underlying reason behind the stagnation of SAARC has been the dysfunctional India-Pakistan relationship, which has prevented the bloc from evolving beyond its current, almost defunct state, with economic and developmental benefits of closer cooperation remaining unrealised. This reflects a shocking failure of leadership in a region comprising nearly 29 percent of the global population living in extreme poverty.
Given its aspirations for big power status and position as the largest, most powerful economy in the region, the major onus of this failure rests with India, which has been entirely incapable of prioritising regional growth over longstanding rivalries. Nevertheless, all SAARC nations, with Pakistan and Bangladesh playing a key role, should work to eliminate at least the more manageable barriers hindering the growth of trade ties. This includes addressing visa restrictions, improving the flow of goods, investment and services, and enhancing connectivity through road, rail, aviation and shipping corridors. Additionally, streamlining regulations and tariff structures would further support regional trade expansion.
As Pakistan and Bangladesh embark upon a new chapter in their relationship, they would do well to remember that mutually beneficial bilateral and multilateral trading and economic relationships can form the foundations of a more integrated and prosperous regional economy, driving collective advancement. By prioritising collaboration and shared interests, both countries can set a positive example for the entire SAARC region.
Copyright Business Recorder, 2024
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