Pakistan, Bangladesh to set up joint business council

DHAKA: Pakistan and Bangladesh agreed to establish a joint business council aimed at improving trade relations between the historically hostile nations.

The agreement was signed during a recent visit by Pakistani business delegation to Bangladesh, marking an important moment in the relations between the two South Asian nations.

Read more: Fuel prices likely to increase from January 16

The signing ceremony was attended by the President of the Federation of Chambers of Commerce and Industry (FPCCI) and representatives from the Administrative Federation of Bangladesh Chambers.

Historically, the relationship between once-united nations has been often tumultuous. Following the partition of the British India in 1947, Pakistan was created as a separate state comprising two geographically and culturally distinct regions: West Pakistan (present day Pakistan), and the East Pakistan (now Bangladesh).

The political and economic disparities between  the two wings eventually led to growing discontent in East Pakistan. It culminated in the Bangladesh Liberation War.

After the Fall of Dhaka in 1971, Bangladesh was declared a new state, which has since sought to create its own identity and economic framework.

Despite the animosities, the two states did recognise the potential for economic cooperation. Trade between the two states has fluctuated over the years.

However, the total trade volume between Pakistan and Bangladesh has now reached an estimated $1 billion; main sectors includes textiles, agriculture and pharmaceuticals.

Read more: SAARC trade: Afghanistan tops as Pakistan’s leading trade partner

Pakistan exports a range of products to Bangladesh, including cotton, textiles and leather goods, while the latter exports jute, garments, and seafood.