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

[Bilal9]

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.

 

[Maula Jatt]

He does know that Pak gov is planning to make electronics an exporting good...

That's why the increase on tariffs in the first place

 

[Maula Jatt]

Yes cotton is something that with more focus (as in introducing better crop tech) we can export as we have vast lands suitable for it

But need to be careful as we already have a textile sector that we are planning to leave in the long run but still need cotton for domestic consumption

On Pak side I think motorbikes, mobile phones in 1,2 years, fans and I am hopeful in couple of years wider EV sector will grow (but not too sure about exporting level) is something Pak can export to Bangladesh

I wonder what else Ban is planning to export outside of textile, electronics?

 

[Imad.Khan]

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.

don't think Pakistan is exporting cotton anymore, last time they were talking about importing more cotton to meet the local demand

 

[Maula Jatt]

"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."

This is actually a great idea tbh and one of the easiest things in the wishlist

Also Pak also have thier own minerals that they'll be happy to export

These centeral asian countries are a cotton producing countries, they'll be more than happy to export cotton to Ban

don't think Pakistan is exporting cotton anymore, last time they were talking about importing more cotton to meet the local demand

It was a bad season

Not to mention increase in demand for cotton as textile demand boomed due to covid in other nations

In normal circumstances we have surplus cotton

 

[Kambojaric]

don't think Pakistan is exporting cotton anymore, last time they were talking about importing more cotton to meet the local demand

We can however act as a transit for Uzbeki and central Asian cotton to Bangladesh via Gwadar (granted Afghanistan stabilizes).

 

[Baby Leone]

until backward country like India is there who still lives in Vedic era, South Asia cannot progress.

 

[Bilal9]

Yes cotton is something that with more focus (as in introducing better crop tech) we can export as we have vast lands suitable for it

But need to be careful as we already have a textile sector that we are planning to leave in the long run but still need cotton for domestic consumption

On Pak side I think motorbikes, mobile phones in 1,2 years, fans and I am hopeful in couple of years wider EV sector will grow (but not too sure about exporting level) is something Pak can export to Bangladesh

I wonder what else Ban is planning to export outside of textile, electronics?

Shipbuilding (medium sized craft), leather goods, sports shoes, sports accessories, light engineering (bicycles & motorbikes), ceramics, pharma are all large well-established sectors but Pakistan is ahead in pharma exports compared to Bangladesh I believe. There are still items which Pakistan and Bangladesh both do not make.

Bangladesh still has three large Naval shipyards from Pakistan period which fabricate naval craft up to LPC level (about 700 tonnes). As reported recently, frigate builds are well under way in one of them after BMRE is completed.

Private yards in Bangladesh are capable of fabricating up to 10,000 DWT craft in their yards, larger private yards for 25,000 DWT medium sized container carriers are planned with collaboration from DAMEN, Fincantieri etc. Of course civilian craft is main export thrust, some medium sized utility craft have been supplied to Karachi Port Trust already.

There is ample opportunity for Pakistani imports in Bangladesh because generally, impression of Pakistani light engineering products in Bangladesh such as lathes, cookware and fans are positive (because of price/quality ratio), much more so than similar imports from India for example. Recent report on export thrust sectors in Bangladesh below, I'm sure there are complementary products for both countries to explore.

32 thrust sectors could fetch billions

Bangladesh has 32 thrust sectors that have the potential to fetch billions of dollars in investment and export earnings, an analyst said yesterday.

www.thedailystar.net

until backward country like India is there who still lives in Vedic era, South Asia cannot progress.

The idea is to forego trade with India for Bangladesh and Pakistan.

Dependence on India for any trade is a long-term losing game. We have learned hard lessons in that sector and lost hundreds of millions. Not going there anymore. These Banyas will cheat you blind at the drop of a hat if it suits them.

India will be fine supplying itself, their internal market consumption is plenty large. Their economy is not an export based economy however they are trying exports in any case.

With Bangladesh and Pakistan, we cannot progress unless we export items and trade outside our own borders.

 

[mb444]

BD needs to concentrate on setting up PTA/FTA with key markets, EU, US,Japan, UK, korea, Aus+NZ, GCC and Asean.

Pakistan is too poor, unstable and irrelevant, we should not waste our time. It maintains massive para-tarrif against BD products similar to india. Saarc is dead.... the nations within it lacks purpose and there is zero unity or common vision. BD needs to look elsewhere to secure its future.

 

[bluesky]

don't think Pakistan is exporting cotton anymore, last time they were talking about importing more cotton to meet the local demand

I am surprised to hear what you said. How come Pakistan imports cotton when it is a country of cotton? Pakistan must redevelop this agriculture sector for its own benefits.

In the case it is unable to export this item it can help the Central Asian countries to use its roads and Port to export this product to BD and all other countries of their choice. Pakistani traders can play a very positive role in this with their connections with Afghan traders.

 

[Samurai_assassin]

BD needs to concentrate on setting up PTA/FTA with key markets, EU, US,Japan, UK, korea, Aus+NZ, GCC and Asean.

Pakistan is too poor, unstable and irrelevant, we should not waste our time. It maintains massive para-tarrif against BD products similar to india. Saarc is dead.... the nations within it lacks purpose and there is zero unity or common vision. BD needs to look elsewhere to secure its future.

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

 

[Maula Jatt]

BD needs to concentrate on setting up PTA/FTA with key markets, EU, US,Japan, UK, korea, Aus+NZ, GCC and Asean.

Pakistan is too poor, unstable and irrelevant, we should not waste our time. It maintains massive para-tarrif against BD products similar to india. Saarc is dead.... the nations within it lacks purpose and there is zero unity or common vision. BD needs to look elsewhere to secure its future.

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

 

[bluesky]

Pakistan is too poor, unstable and irrelevant, we should not waste our time.

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 of credits in a certain year and will pay back $7 billion in arrears.

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".

 

[Maula Jatt]

Shipbuilding (medium sized craft), leather goods, sports shoes, sports accessories, light engineering (bicycles & motorbikes), ceramics, pharma are all large well-established sectors but Pakistan is ahead in pharma exports compared to Bangladesh I believe. There are still items which Pakistan and Bangladesh both do not make.

Bangladesh still has three large Naval shipyards from Pakistan period which fabricate naval craft up to LPC level (about 700 tonnes). As reported recently, frigate builds are well under way in one of them after BMRE is completed.

Private yards in Bangladesh are capable of fabricating up to 10,000 DWT craft in their yards, larger private yards for 25,000 DWT medium sized container carriers are planned with collaboration from DAMEN, Fincantieri etc. Of course civilian craft is main export thrust, some medium sized utility craft have been supplied to Karachi Port Trust already.

There is ample opportunity for Pakistani imports in Bangladesh because generally, impression of Pakistani light engineering products in Bangladesh such as lathes, cookware and fans are positive (because of price/quality ratio), much more so than similar imports from India for example. Recent report on export thrust sectors in Bangladesh below, I'm sure there are complementary products for both countries to explore.

32 thrust sectors could fetch billions

Bangladesh has 32 thrust sectors that have the potential to fetch billions of dollars in investment and export earnings, an analyst said yesterday.

www.thedailystar.net

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

 

[mmr]

BD needs to concentrate on setting up PTA/FTA with key markets, EU, US,Japan, UK, korea, Aus+NZ, GCC and Asean.

Pakistan is too poor, unstable and irrelevant, we should not waste our time. It maintains massive para-tarrif against BD products similar to india. Saarc is dead.... the nations within it lacks purpose and there is zero unity or common vision. BD needs to look elsewhere to secure its future.

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.