Home ›› 16 Mar 2022 ›› Opinion
Bangladesh’s main export item is garments. Thus, it is easy to say that Bangladesh needs cotton. But the production of cotton is low in Bangladesh. To fulfil its demand, Bangladesh imports cotton. On the other hand, Pakistan and Central Asian countries are the primary sources of cotton in South Asia and other parts of the continent.
However, Bangladesh is the overall top tenth export market of Pakistani products such as cotton, plastic, rawhide, fruits, dates, etc. Jute and other textile fibres, raw tobacco, and zippers are among the products exported to the Pakistani market. But there are no direct shipping lines between Pakistan and Bangladesh to import and export efficiently. Business is affected because of the lack of a direct connection, which causes late consignments and creates other hurdles for importers and exporters.
It is very pertinent to mention that Bangladesh has made a tremendous effort to boost its economy in the past few years. Pakistan and Bangladesh can work together to expand their business and connectivity ties.
Everyone is dependent on each other in this globalized world. States are more connected regionally and globally now. Regional connectivity is needed to bolster the development of the region’s countries. China-Pakistan Economic Corridor is one of the regional connectivity projects in Asia. It is under the China-funded’ Belt and Road Initiative’ project.
Bangladesh and Pakistan both have already joined in the project. Chinese President Xi Jinping visited Bangladesh in 2016. He declared that China intends to invest massive amounts of dollars in Bangladesh. Bangladesh and China signed 27 agreements worth billions of dollars during his visit to Bangladesh. Bangladesh joined the BRI in 2017 officially.
That was the perfect decision of PM Sheikh Hasina Wazed. China and Bangladesh vowed to deepen their BRI cooperation during the visit of PM Sheikh Hasina to Beijing in 2019. The Chinese government has already granted duty-free access to 97 per cent of Bangladeshi products to its market.
Bangladesh-China bilateral trade is growing day by day. China is an important source of import for Bangladesh. China has made a significant investment in the infrastructural development of Bangladesh. One of the most strategically important investments is in the Payra port of Bangladesh. China has financed and constructed the Payra Deep Sea Port project estimated to cost between $11 billion and $15 billion. The port is the third-largest port in the country and started operating in 2016. If this port could be connected with Gwadar port via Hambantota port, Bangladesh would benefit ultimately. The Bangladeshi prime minister has already shown her interest in bolstering trade ties with Pakistan during a meeting with the Pakistan envoy to Bangladesh Imran Ahmed Siddiqui in October last year. Prime Minister Sheikh Hasina reiterated her government’s desire for stronger trade ties and economic collaboration with Pakistan.
Now another opportunity is waiting for Bangladesh. CPEC will result in several benefits for the South Asian, Central Asian, and Middle Eastern countries. Bangladesh can and should exploit the connectivity project for its own interest.
New routes will be available now for Bangladesh to reach Pakistan, such as through China. These routes must be utilized for increasing bilateral trade. In 2020, the volume of bilateral trade was $644 million, which was very little considering the market and opportunities. The good news is that the trade volume increased significantly in 2021, as a rise in trade between Pakistan and Bangladesh has been reported. Bangladesh and Pakistan are both developing countries faced with similar kinds of conditions. Thus, both countries should take measures and collaborate in enhancing their bilateral trade ties.
Bangladesh’s Payra, Chattogram (Chittagong), and Mongla ports can be connected with Gwadar port, Karachi port via Sri Lanka’s Colombo, Hambantota ports. Then Bangladesh will be able to utilize the China-run CPEC connectivity project in Pakistan. Bangladesh can easily import and export products from Central China, Pakistan, Central Asian states, Russia, Afghanistan, Iran, etc. We know that Central Asian states would like to connect with Pakistan now through this project. Like the Peshawar-Kabul-Kandahar Railway connectivity and Turkey-Iran-Afghanistan-Pakistan connectivity, Bangladesh-Sri Lanka connectivity could be boosted up also.
Connectivity is closely related to development. Therefore, there is no alternative to connectivity in this modern globalization era. Bangladesh can play an important role in developing the infrastructure, and many other sectors in Afghanistan utilize these regional connectivity initiatives.
Bangladesh, Pakistan, and Afghanistan share a common platform like SAARC. Bangladesh and Pakistan both would benefit from bilateral trade if the political situation is stable in the war-ravaged country. Therefore, there are some opportunities for Bangladesh in the case of utilization of the CPEC project.
Bangladeshi businesses may explore opportunities being offered by CPEC, which can also be used as a transport link if Bangladesh is sourcing its imports from western and central China. Pakistan and Bangladesh have become very serious regarding improving trade relations with each other in the last few years. We have found great fabric and yarn manufacturers from Pakistan. Bangladesh has a tiny window of opportunity available to it. Although there are certain longstanding issues between Pakistan and Bangladesh, the businesspersons on both sides understand the importance of bilateral trade. CPEC holds great significance and this opportunity will bring prosperity to Bangladesh as well because 30-40 per cent of its imports are coming from China. Using CPEC as a channel, Pakistan can promote it to Bangladeshi businesspersons.
Pakistan exports potatoes to Russia and imports wheat from it. Bangladesh also needs to export potatoes to Russia and import wheat from it. Bangladesh can utilize this route easily, taking the help of Pakistani businesspeople. Although Bangladesh and Pakistan compete with each other in this sector, bilateral efforts would pave the way to strengthen the business ties.
During the onion crisis in 2019 in Bangladesh, when India stopped exporting onions to Bangladesh, Bangladesh imported onions from Pakistan. Therefore, Bangladeshis understood the significance of the route at a time of emergency. Eighty per cent of the Bangladeshi population is young and they are willing to be employed by the business community. We need to help the youth on both sides connect nationally, regionally and globally. So, Bangladesh should utilize the CPEC connectivity project to maximize its own business interests. There is no alternative path without connectivity, in the globalised world.
The writer is a NGO activist and researcher. He can be reached at pathikhasan1141@gmail.com
