On November 11, a direct cargo ship from Karachi, Pakistan, arrived in the port of Chittagong, Bangladesh, establishing the first-ever direct maritime connection between the two nations. This was a huge step to strengthen the connections.
The Bay of Bengal, the Indian Ocean, and the Arabian Sea bind Bangladesh and Pakistan, who are close neighbors. Both nations would gain from the growth of these marine linkages in terms of regional communications, trade, and investment. 2907 nautical miles separate the ports of Chittagong, Bangladesh, and Karachi, Pakistan.
Trade was conducted through Singapore and other nearby ports due to the lack of marine connectivity between Chattogram Port and Pakistan’s port in Karachi. Consequently, trading volumes have not yet reached a noteworthy level. However, Pakistan and Bangladesh are positioned well on a number of economic indices. Therefore, they wish to use this marine link to improve bilateral commerce.
Although ties between Bangladesh and Pakistan remained chilly under Sheikh Hasina’s 15-year administration, optimism about the possible normalization of comprehensive economic connections has been reignited by Bangladesh’s recent political upheaval. Bangladesh is looking for additional overseas partners to help it overcome the present economic issues. Therefore, increasing trade and economic cooperation as well as looking into joint ventures and investment possibilities may be advantageous to both parties and promote regional development.
With increased commerce between the two nations, there has been a renewed push for the establishment of direct shipping services between the ports of Chittagong and Karachi.
The direct route promises to save travel times and greatly simplify supply networks. With an expected capacity of 2,300 TEUs and the ability to carry a wide range of cargo, the ship’s journey demonstrates the rising need for direct trade between the two nations.
In addition to creating a more integrated commerce network throughout the area, Syed Ahmed Maroof, Pakistan’s High Commissioner to Bangladesh, described the direct shipping route as a significant step forward in strengthening corporate and bilateral trade connections between Pakistan and Bangladesh. According to him, the program would not only quicken current trade flows but also open up new business prospects for companies of all sizes, from tiny importers to major exporters.
Cotton accounted for the majority of Pakistan’s $839 million in exports to Bangladesh in 2022. Jute and other textile fibers were Bangladesh’s top exports to Pakistan, which brought in $74 million.
The majority of Bangladesh’s imports from Pakistan include equipment, cotton, salt, and sulfur – raw materials used in the apparel sector.
At least $2.95 billion worth of commodities, including textiles, agricultural products, food, chemicals, and more, might be exported from Pakistan to Bangladesh. Bangladesh might potentially be a major market for Pakistani exports like jute and medicinal items.
Through organizations like the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and the South Asian Association for Regional Cooperation (SAARC), both nations might investigate further regional economic integration.
With increased commerce between the two nations, there has been a renewed push for the establishment of direct shipping services between the ports of Chittagong and Karachi.
The primary seaport in Bangladesh is Chittagong. The Chattagram Port Terminal handles 90 percent of Bangladesh’s commerce, with the remaining 80 percent going through the ports of Mangla and Payra. For the same reasons and with a notable increase in commerce, Bangladesh may likewise profit from using Pakistan’s Gwadar port. commerce between Karachi and Bangladesh’s Chittagong, Payra, and Mangla ports will increase commerce and shorten the distance between the two nations. After that, this network may be expanded to Afghanistan, Iran, Central Asia, and Northeast China.
Connectivity at sea is essential. To establish a trilateral access and distribution center, Sri Lanka’s Colombo and Hambantota Ports can be used to link Pakistan’s Gwadar ports, which include Karachi, Port Qasim, and Keti Bandar, with Bangladesh’s Chittagong, Payra, and Mangla ports. Products like cotton are imported by Bangladesh and Sri Lanka from Pakistan, Central Asian nations, Western and Central China, and even Russia.
Bangladeshi clothing, pharmaceuticals, fruits, and vegetables, as well as its emerging IT services and electronic sectors, can be combined with Sri Lanka’s traditional tea, clothing, rice, and agricultural businesses, as well as emerging mechanical and industrial manufacturing industries like car tires.
Bangladesh is well situated to serve as a gateway between SAARC and ASEAN, giving each region’s export-oriented businesses possible access to both. Whereas SAARC comprises Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka, ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Between Central Asia, Afghanistan, the Middle East, and Northwest China, Pakistan serves as a gateway and a hub. As a result, supply chain value and regional commerce may be developed in a way never seen before.
It is anticipated that direct maritime connectivity between Karachi and Chittagong will be crucial to the growth of trade and commerce between the two nations. They may significantly cut down on the time and expense of shipping products between them, and they will probably be crucial in forging connections with other Middle Eastern and Central Asian nations, such as China and Russia. Direct shipping between the two nations will incentivize traders to increase their regional investment and trade. It is anticipated that both countries would gain from the development of trade and commercial corridors that are coordinated between Bangladesh’s Look West Policy and Pakistan’s Dhaka rapprochement, as well as from the building of connection through coastal shipping.
The writer is a Bangladesh-based independent columnist and freelance journalist.