ISLAMABAD: Pakistan and Bangladesh have signed a Memorandum of Understanding (MoU) to establish a joint business council to strengthen bilateral trade partnership.
The MoU was signed between the Pakistan Federation of Chambers of Commerce and Industry (FPCCI) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
The FPCCI President Atif Ikram Sheikh and FBCCI Administrator Muhammad Hafizur Rahman signed the MoU in Dhaka on Monday.
Pakistani High Commissioner to Bangladesh Syed Ahmed Maroof attended the event.
The Pakistan-Bangladesh Joint Business Council aims to promote economic partnership and unlock mutual growth opportunities. It will also oversee initiatives to enhance bilateral trade.
Speaking at the event, Maroof called the initiative a significant step in facilitating businesses, enhancing collaboration, and boosting trade between the two countries.
Trade relations between Pakistan and Bangladesh had moderate improvements in 1990. Both countries recognise the benefits of economic cooperation.
During this period, Pakistan exported textiles, chemicals, and machinery to Bangladesh, while Bangladesh exported jute, tea, and agricultural products. Trade volume, however, remained modest, ranging between $50 million and $100 million annually.
In 2006, the Pakistan-Bangladesh Joint Economic Commission was established to discuss trade and investment, focusing on agriculture, energy, and transport.
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The 2010s saw a significant rise in trade. Pakistan exported textiles, rice, cement, and chemicals, while Bangladesh increased exports of ready-made garments, jute, and agricultural products such as fish and fruits. In 2013, both nations signed an MoU to improve market access and facilitate business exchanges.
Trade volume between the two countries surged to approximately $1.6 billion in 2021-2022.
Both governments and business organisations continue to pursue new agreements and councils to further expand trade and investment opportunities.
