On November 13, 2024 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 revive old connections.

Trade was hitherto conducted through Singapore and other nearby ports due to the lack of marine connectivity. Consequently, trading volumes never reached a noteworthy level. 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. With increased commerce between the two nations, there was a renewed push for the establishment of direct shipping services between the ports of Chittagong and Karachi.

Significant step in bilateral commerce

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. Increasing trade and economic cooperation as well as joint ventures and investment possibilities may be advantageous to both parties and promote regional development.

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 bilateral trade and business connections between Pakistan and Bangladesh. According to him, the programme 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.   

Potential for regional economic integration

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 explore further regional economic integration.

 The primary seaport in Bangladesh is Chittagong and Chattagram Port Terminal handles 90% of the country's commerce, with the remaining 80% 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. Connectivity tween Karachi and Bangladesh's Chittagong, Payra, and Mangla ports will increase commerce and shorten the distance between the two nations. This network may be expanded to Afghanistan, Iran, Central Asia and China.

Connectivity by 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 port, besides 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.

Direct maritime connectivity between Karachi and Chittagong will be crucial to the growth of trade and commerce between the two nations and beyond. They may significantly cut down on the time and expense of shipping products between them and will potentially be crucial in forging connections with other Middle Eastern, Central Asian and East Asian nations, including Russia and China. 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 Bay of Bengal, the Indian Ocean, and the Arabian Sea bind Bangladesh and Pakistan. Both nations would gain from the growth of these marine linkages in terms of regional communications, trade, and investment, even though 2907 nautical miles separate the two ports. 

(The author is a Dhaka-based independent columnist specialising in South Asian affairs. Views are personal. He can be contacted at ibrahimkhalilahasan@gmail.com)