Regional experts have emphasized the need for Pakistan and Bangladesh to adopt a “key paradigm shift” in their bilateral relationship by prioritizing trade and investment over traditional diplomatic engagement. They argue that institutionalizing economic ties could unlock immense growth potential and foster long-term stability between the two South Asian neighbors.
Currently, Pakistan and Bangladesh share historical and cultural bonds, but their trade relationship remains underutilized. Experts highlight that formal frameworks, such as joint trade agreements, investment treaties, and special economic zones, could boost commerce and create jobs in both countries. “Institutionalizing ties is critical to moving beyond occasional collaborations to sustained economic integration,” said a regional analyst.
Areas of Opportunity
- Textiles and Garments: Both nations are major players in the global textile industry. Collaboration in manufacturing, supply chains, and technology could reduce costs and enhance competitiveness.
- Agriculture: Bangladesh’s agricultural exports and Pakistan’s farming technology and infrastructure could complement each other.
- Energy: Joint projects in renewable energy and power generation could address energy deficits in both countries.
- Services: Tourism, IT, and financial services offer untapped potential for mutual benefit.
Challenges to Address
Bureaucratic hurdles, lack of awareness about trade policies, and infrastructure gaps are key obstacles. Experts recommend establishing a bilateral task force to streamline processes, resolve disputes, and promote investment opportunities.
Why Institutionalize?
Institutional frameworks provide stability, encouraging private-sector participation. They also help build trust, which is essential for navigating political changes in either country. “A formal structure ensures that economic ties persist regardless of short-term political fluctuations,” noted an economist.
Both governments have shown initial interest, with recent talks focusing on enhancing connectivity and reducing trade barriers. However, experts stress that concrete actions, such as simplifying visa processes and offering tax incentives, are needed to turn rhetoric into results.
In summary, strengthening Pakistan-Bangladesh economic ties through institutional mechanisms could drive regional prosperity, improve living standards, and solidify peace. The time for a strategic shift is now.