The short, direct maritime route between the port of Chittagong in Bangladesh and the port of Karachi in Pakistan has only just been reinstated. This joint announcement represents a significant and positive step toward mending trade relationships between the two nations. This restored link has been running since last November. The Pakistani government wants to massively increase bilateral trade and increase annual trade to $3 billion within one year.
The port of Chittagong is the economic lifeblood and main trade artery for Bangladesh. Likewise, the port of Karachi is a critical hub for Pakistan’s trade. No doubt, the direct route between these major ports is going to change the trading landscape forever. It will make the movement of goods between our two countries faster, more efficient, and safer. Annual trade levels are still well under that $3 billion threshold. Regardless, both governments are keenly optimistic about the immense possibility for growth.
Besides facilitating better maritime logistics, the Pakistani government’s efforts strongly aim at raising civilian and military exchange visits with Bangladesh. This project seeks to develop stronger relationships between U.S. and EU regulators and promote confidence in each other’s trade practices. Business leaders in Pakistan are growing bullish on the new trade opportunities. They are keen on developing new paths in the Bangladeshi market.
The political factors have changed in recent weeks, especially after the August removal of Bangladeshi Prime Minister Sheikh Hasina. This reform process has catalyzed a historic thaw in relations between Pakistan and Bangladesh. Consequently, an environment conducive to greater collaboration has taken root. As both countries start this new chapter, they are focused on encouraging trade and investing in economic partnership. This focus is certainly the leading edge of their agendas.
According to the experts, restoring the direct maritime route would have enormous benefits. Through this type of inclusivity, both countries can capitalize on each other’s strengths in a better way. By capitalizing on their respective ports, Pakistan and Bangladesh can increase their competitiveness in regional trade and encourage economic development.