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

[Maula Jatt]

@Sainthood 101


Here is the BD top 10 imports from 2020:

Bangladesh's Top Imports 2023

Bangladesh's biggest imports in 2023 were led by processed petroleum oils, raw cotton & iron or steel scrap

www.worldstopexports.com

View attachment 768511


As you can see Cotton is No.1 at nearly 5 billion US dollars.

Cereals are at 1.7 billion US dollars?! Does Pakistan have any products in this categoty as capturing just 20% of BD market will be 340 million US dollars per year

Now as I have said you also have to look at the fast growing BD economy of 7-8% a year and all economic forecasters expect this to continue up to 2035.

I think Pakistan has more of a chance now as Modi's ban on the UK AstraZeneca vaccine exports has highlighted just how unreliable and frankly immoral that India is. BD will accelerate its dependence away from India for as much products as possible and this gives opportunities for others like Pakistan.

This is a good thread and BD and Pakistan need to start trading for mutual benefits first and then we can obviously move into areas like military co-operation. BAF can learn a lot from PAF as a good example in the military arena.

Oh wow I didn't know that, there are 3,4 areas that can help Pak get surplus or even if we didn't there won't be a crazy defecit

This current gov in Pak would be very receptive to the idea especially with connection to centeral asian markets and thier cotton, gas, minerals and ofcourse since they're largely an untapped market Bangladesh will probably get a trade surplus with them etc

No you GDP over the the course of history was higher than BD for a little bit intermittently.... only your pomposity allows you to believe otherwise...simple internet search would rectify that fallacy.

I am old enough to remember pakistanies telling everyone how you are richer than everyone in S. Asia and how you are really central asians....

I dont see why you should begrudge other south asians the same opportunity to meet out insults that you subjected others to

Ha ha, so my assertion was correct

Dumb South Asians, there's nothing more to it all of this region is made up of petty people with India being the front and center of it all

And attitudes won't change easily

 

[KaiserX]

BD definately has a lot of challenges ahead.

Thankfully we have low debts, high reserves, reasonable credit rating so able to absorb certain amount of shocks.

There is no reason to be complacent or fear the future.

Most people forget to take into factor political considerations which unfortunately have a huge effect on the economies of south asia compared to other nations.

For example in many ways BD has benefitted from a stable political environment with a dictatorship/1 party rule. This in many ways allowed the BD govt to pass and implement reforms and focus on development of the economy since that was priority 1 due to the lack of opposition.

In many ways Pakistan today is where BD was in 2010 when the awami league took over and settled down. It only took IK about 3 years to settle down, pass much needed reform, and create a solid roadmap for taking Pakistan down the road of consistent economic growth rather than the boom & bust cycle the economy has been through since 1947.

Growth in Pakistan is slowly returning, it is projected to be 4+% this year, 5% next year and so on. It wont be until 2024-2025 where Pakistan is growing at a consistent 7% growth rate similar to BD today but I am proud that we are on a solid roadmap to eventually get there with time. Pakistans main advantage is that we will be in BD position today but with far more resources, much more modern infrastructure (CPEC/other projects coming on board), and with a larger more wealthy middle class.

BD is not where it is today because of 1 year of 7% growth but because it has had many years of consistent growth.

Where I see BD-Pakistan convergence greatly is the combined middle class of a united Pakistan (PAK-BD) is of over 250+ million people which is the 3rd largest middle class in the world after China and India. Allowing free trade of a population of 400+ million would greatly compound economic growth and opportunities in both countries. This should also come with technology transfers something which BD can benefit greatly from and knowledge transfer something which Pakistan can benefit greatly from.

It is also very important for the political class of both countries to decouple relations between the 2, from GANGEDESH. The last thing discussed in any PAK-BD interaction should be GANGEDESH. Unfortunately we have an enemy neighbors that wants to always play a spoiler in the region and doesnt want great relations between BD-PAK. Both nations should be aware of such nefarious designs.

 

[Imad.Khan]

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.

Here is the graph to show that cotton imports have taken over production

Source = https://www.graincentral.com/market...ortfall-drives-imports-to-record-levels-usda/

The short answer for the reason in decline is "Sugar cane".

The long answer involves, political short-sightedness, lack of electricity for manufacturing sector, security, rising cost of production, under market prices to the farmer, sugar mafia etc etc.

 

[bluesky]

Bd taka is artificially inflated we all know that. Once its adjust to market rate economy economy will look lot smaller. Unless bd increase export and diversity now...after few years when all these infrastructure completed russia for example will ask for pay back 12 billion us dollar...and bd will face intense presure and currency value will definitely go down.

And honestly bd is going that way since it still failing to increase its export beyond making clothes.

"Russian State Atomic Energy Corporation-Rosatom and Bangladesh Atomic Energy Commission signed a financial contract in 2015 with amounts to the United States Dollar (USD) 12.65 billion for the design, construction, and supply of twin VVER-1200 model Gen III+ nuclear reactors with 1200MW electric capacity each, including the first few years’ fresh fuel supply with Russia financing 90% of the total investment cost at an interest rate of libor plus 1.75%, capped at 4%, repayable in 28 years with 10 years’ grace period".

I am not sure of the LIBOR rate because it fluctuates all the time. Now, it is quite low. Even then, we can assume the total of (LIBOR + 1.75%) interest to be 2%. So, the $12.65 billion with 2% interest, the yearly payment will be $594.419 million for a long 28 years. It means, a payment of $16.643 billion in total. So, at the end of 28 years, the total interest payment is ($16.643 b - $12.65 b) = $3,993 million.

 

[Samurai_assassin]

I think this is an excellent idea.

BD can export electronics(Walton etc) and ships to Pakistan and in return should be able to take Pakistani cotton and agricultural products.


Have targets like 1 billion US dollar trade by 2025 and 5 billion US dollars by 2030 would be useful and a marker of where the two countries should be in terms of their trading relationship.

Indians will jump up and down as they do not want BD and Pakistan to have good relations but this is none of their business.

Not a business expert but both nations developing trade ties can only be of benifit, right? Its time to move forward in the relations. Narinder Modi is a dispicable character that will no doubt try to halt any relations developing between the two nations.

 

[UKBengali]

Not a business expert but both nations developing trade ties can only be of benifit, right? Its time to move forward in the relations. Narinder Modi is a dispicable character that will no doubt try to halt any relations developing between the two nations.

Modi is just the bad face of Indian design to divide and rule S Asia.

Luckily his incompetence and turdiness over the UK AstraZeneca vaccine exports have greatly weakened the pro-India forces in BD.

Great time for BD and Pakistan to engage economically as there are lots of areas where their economies complement each other.

 

[Samurai_assassin]

Modi is just the bad face of Indian design to divide and rule S Asia.

Luckily his incompetence and turdiness over the UK AstraZeneca vaccine exports have greatly weakened the pro-India forces in BD.

Great time for BD and Pakistan to engage economically as there are lots of areas where their economies complement each other.

Modi has a mental illness of wanting to rule the subcontinent and wider region. He belongs to an ideology that claims every land in south Asia, southeast Asia and the middle east belongs to India.
This is not an average Indian citizen, Modi is the leader of a nation that has a billion population. An extreamly dangerous mindset built on hate, racism, facism, occupation, propaganda, riots etc
Pakistan and Bangladesh should develope trade ties. We cannot change the regrettable past blunders and mistakes by our leaders. However the new generation should forge ties.

 

[UKBengali]

Modi has a mental illness of wanting to rule the subcontinent and wider region. He belongs to an ideology that claims every land in south Asia, southeast Asia and the middle east belongs to India.
This is not an average Indian citizen, Modi is the leader of a nation that has a billion population. An extreamly dangerous mindset built on hate, racism, facism, occupation, propaganda, riots etc
Pakistan and Bangladesh should develope trade ties. We cannot change the regrettable past blunders and mistakes by our leaders. However the new generation should forge ties.

Modi is the best thing to happen to both Pakistan and BD.

He is doing a great job in pushing BD away from India and more cooperation with China.

Modi fails to supply the contracted UK vaccines to BD and along comes China to help fill the void.

Next step is for Hasina and Imran Khan to put past emnity aside and realise the massive potential in better relations.

 

[Samurai_assassin]

Modi is the best thing to happen to both Pakistan and BD.

He is doing a great job in pushing BD away from India and more cooperation with China.

Modi fails to supply the contracted UK vaccines to BD and along comes China to help fill the void.

Next step is for Hasina and Imran Khan to put past emnity aside and realise the massive potential in better relations.

Let's hope for the best. No doubt indias mouth piece, its propaganda media network will spew venom, lies and more lies that will try to seperate the two nations potential.

 

[UKBengali]

Let's hope for the best. No doubt indias mouth piece, its propaganda media network will spew venom, lies and more lies that will try to seperate the two nations potential.

Despite Hasina’s public utterances I believe she wants good ties with Pakistan, especially one led by Imran Khan.

She is waiting for the right time and this seems like a good one.

BD and Pakistan should be natural allies as they are two Muslim countries on opposite sides of Hindu India.

 

[Samurai_assassin]

Despite Hasina’s public utterances I believe she wants good ties with Pakistan, especially one led by Imran Khan.

She is waiting for the right time and this seems like a good one.

BD and Pakistan should be natural allies as they are two Muslim countries on opposite sides of Hindu India.

Unfortunatly some leaders dare not to visit Pakistan as they do not want to harm their ties with New Delhi. I believe Putin is one of them.

 

[UKBengali]

Unfortunatly some leaders dare not to visit Pakistan as they do not want to harm their ties with New Delhi. I believe Putin is one of them.

The more powerful China gets and the richer BD gets, the less BD will take notice of what India thinks.

Day will soon have arrived where BD will not care one iota what India thinks and treat it like just an awkward and incompetent neighbour.

 

[KaiserX]

Despite Hasina’s public utterances I believe she wants good ties with Pakistan, especially one led by Imran Khan.

She is waiting for the right time and this seems like a good one.

BD and Pakistan should be natural allies as they are two Muslim countries on opposite sides of Hindu India.

Most people misunderstand the concept of strong PAK-BD relations. Being united does not mean we have a single Prime minister or single Military. EU or the GCC is a perfect example and framework for PAK-BD to follow.

Out of all nations only BD is a perfect ideal model for PAK to follow. Unfortunately we have neighbors to the west who are far from role models (Afghanistan/Iran). China is culturally/racially a whole different civilization and cannot be a model for Pakistan in many ways. Gangedesh is simply a dump that our nation should have 0 association with. That leaves Nepal, Sri Lanka, and BD. Nepal is a none - role model, sri lanka has many issues of its own, that leaves BD a nation that culturally, ethnically, and religiously is closest to Pakistan apart from afghanistan yet it is a perfect role model due to its economic growth and social development progress.

BD is the only natural ally/role model for Pakistan in the region.

Historically United Pakistan/Sri lanka was the major player in the subcontinent. Anytime Dhaka/Lahore were under 1 rule they had hegemony over the majority of south asia. Our natural axis of resistence against GANGEDESH is PAKISTAN- BANGLADESH-SRI LANKA- AFGHANISTAN. There is a strong need for a group apart from SAARC consisting of those nations+China.

 

[Samurai_assassin]

Most people misunderstand the concept of strong PAK-BD relations. Being united does not mean we have a single Prime minister or single Military. EU or the GCC is a perfect example and framework for PAK-BD to follow.

Out of all nations only BD is a perfect ideal model for PAK to follow. Unfortunately we have neighbors to the west who are far from role models (Afghanistan/Iran). China is culturally/racially a whole different civilization and cannot be a model for Pakistan in many ways. Gangedesh is simply a dump that our nation should have 0 association with. That leaves Nepal, Sri Lanka, and BD. Nepal is a none - role model, sri lanka has many issues of its own, that leaves BD a nation that culturally, ethnically, and religiously is closest to Pakistan apart from afghanistan yet it is a perfect role model due to its economic growth and social development progress.

BD is the only natural ally/role model for Pakistan in the region.

Historically United Pakistan/Sri lanka was the major player in the subcontinent. Anytime Dhaka/Lahore were under 1 rule they had hegemony over the majority of south asia. Our natural axis of resistence against GANGEDESH is PAKISTAN- BANGLADESH-SRI LANKA- AFGHANISTAN. There is a strong need for a group apart from SAARC consisting of those nations+China.

Afghanistan is out of our depths, a nation in chaos and disarray . Yes we share many historical and cultural connections however the border must be secure with them and Iran, only open at legal entry points.
Pak should work to open business ties with BD, there is a shared history despite the political fallout half a century ago.

 

[Jobless Jack]

Oh boy, indians are going to throw a hissy fit over this.