Changing political dynamics in S. Asia

11 Jan, 2025

Driven by rejuvenated public sentiments for a change, the Bangladesh’s incumbent government is gradually but consistently moving out of the Indian orbit through measured and calculated steps — which many in Bangladesh view as dictatorial and an infringement on the sovereignty of the state in terms of its economy, energy security, border security and foreign affairs.

Responding to these sentiments there is a major shift in the foreign policy of Bangladesh. It has fairly distanced itself from the hegemony of India in the region and is building bilateral alliances in the region. It has also reached out to Pakistan for better ties and a new beginning in their relationship. In an interview with CNN-News18, the spokesperson for the caretaker head of government, the Noble Laureate Muhammad Yunus, said: “Yunus wants the revival of SAARC and a good relationship with all countries and that also includes Pakistan. As part of this, we are building good relations.”

Similar sentiments have been expressed by its opinion makers. Addressing an international conference organised on the issue of Pakistan-Bangladesh relations, a Bangladeshi expert expressed solidarity with Pakistan. Additionally, the pro-Pakistan professor has also described Bangladesh’s relationship with Pakistan as historic. “We are bound by historic bonds. We have gone through ups and downs, but we have always felt that we need each other”, Shahiduzzaman said about Bangladesh-Pakistan relations. The witnesses of the horrors of the separation of the then East Pakistan from its western wing may not have imagined the rekindle of old ties in their life time.

Revival of SAARC is not what India wants. The year of 2016 witnessed the demise of SAARC for all practical purposes when the SAARC meeting scheduled to be held in Islamabad in 2016 had to be called off by the then PML-N government as India’s Prime Minister Narendra Modi had decided against attending the 19th SAARC summit in Islamabad under the pretext of a series of attacks in India by terrorists based in Pakistan. Other South Asian leaders also rallied behind Modi by not attending the meeting. Pakistan was left helpless and isolated in the region.

India wanted its hegemony in the region and Pakistan was an irritant to it. India’s intention surfaced when soon after abandoning SAARC, New Delhi started promoting the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) as an alternative forum for regional cooperation.

The BIMSTEC comprises seven nations, including five of the eight SAARC members. It includes India, Bangladesh, Bhutan, Sri Lanka, Myanmar, Nepal and Thailand. It excludes Pakistan, which India has been accusing of blocking regional connectivity projects conceived within the framework of the SAARC.

New Delhi’s focus is to capitalize on the energy security of the region. BIMSTEC Energy Centre (BEC) has been established at Bengaluru, which will promote regional cooperation in the sector among India, Bangladesh, Bhutan, Sri Lanka, Myanmar, Nepal and Thailand. The government of India has signed the ‘host country agreement ‘.

The BEC in Bengaluru will manage a regional energy database, conduct feasibility studies for the intra-BIMSTEC projects and enhance cooperation by preparing a framework for networking among national agencies of the BIMSTEC member nations. It will also promote energy security through grid interconnections, renewable energy development and realization of energy efficiency.

The BIMSTEC is now working on finalising policies for transmission of electricity and trade, exchange of electricity and tariff mechanism. A BIMSTEC Grid Interconnection Master Plan is also under discussion within the bloc.

All these initiatives, spearheaded by India, mean that the energy security of this South Asian region would rest in the hands of India, giving it an opportunity to capitalize on the energy resource of these countries, notably, the hydro power resources of Bhutan and Nepal. It also opens ways for India to monopolies the energy market in the region. The classic example is that of Bangladesh.

Bangladesh is primarily dependent on India for its electricity needs. Under a 25-year agreement Bangladesh has been sourcing electricity since April 2023 from Adani Group of India, along with about 1,160MW from other Indian plants.

The Adani power costs Bangladesh about 12 taka ($0.1008) a unit, an official of the Bangladesh Power Development Board said, citing the latest audit report for financial year 2023/24. That is 27 percent higher than the rate of India’s other private producers and as much as 63 percent more than Indian state-owned plants, he added. This is becoming unsustainable for Bangladesh.

The Indian agenda to isolate Pakistan from any meaningful presence in the region is apparent. India abandoned SAARC to speed up its demise. It is using its veto power to keep Pakistan out of BRICS whereas far smaller economies have been admitted to this global bloc.

Embroiled in political and economic crisis at home Pakistan took this isolation lying down. An opportunity to join hands with Bangladesh for SAARC revival is the right direction for Pakistan to regain its relevance in the region. SAARC’s revival may not be possible but its equivalent could be developed and joined by countries in the region who too want to move out of India’s hegemony but have no alternative.

The governments alone cannot do all of it. Private sector has to join in. A delegation of Federation of Pakistan Chamber and Industry (FPCCI) is gearing up to visit Bangladesh very soon. Encouraged by enabling cost and ease of doing business in Bangladesh, many industries in Pakistan, particularly textile industry, are contemplating moving to Bangladesh.

Copyright Business Recorder, 2025

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