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ISLAMABAD: Pakistani foreign affairs experts on Sunday urged Islamabad and Dhaka to institutionalize their relations through increased trade and investment, terming the rapprochement between the former rivals as a “key paradigm shift” in their ties.

Pakistan’s Deputy Prime Minister Ishaq Dar on Sunday concluded a two-day visit to Bangladesh, where he met senior officials of the country, including Chief Adviser Muhammad Yunus. The two nations signed agreements to abolish visas for diplomatic and official passport holders, promote trade, investment and economic cooperation.

Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh. Ties between Pakistan and Bangladesh have warmed up since ex-PM Sheikh Hasina’s ouster as a result of a student-led uprising in August 2024.

Islamabad has attempted to forge closer ties with Bangladesh in recent months as relations remain frosty between Dhaka and New Delhi over India’s decision to grant asylum to Hasina after she fled the country. Both Pakistan and Bangladesh began sea trade last year and began expanding government-to-government commerce in February.

“It [rapprochement] has a very huge strategic value as this is one of the key paradigm shifts in Pakistan and Bangladesh relations that we are witnessing now,” Dr. Sajid Amin, deputy executive director at Islamabad-based Sustainable Development Policy Institute (SDPI) think tank, told Arab News.

“Pakistan and Bangladesh must prioritize institutionalizing relations through a free trade agreement and conducive investment policies, so ties remain stable and long-term, beyond changes in government,” he explained.
Amin noted that new governments often reverse policies of their predecessors, saying the positive shift should not be person- or government-specific.

“It needs a proper mechanism through agreements and MoUs to ensure that with a change of government, it does not go back to square one,” he said, adding that increased trade between the two countries can positively impact the inter-regional South Asian trade patterns, given Bangladesh’s economic potential in the region.

On Sunday, the Pakistani and Bangladeshi commerce ministries signed a memorandum of understanding to establish a Joint Working Group on Trade, aiming to raise their bilateral trade volume to $1 billion in the financial year that began in July.

In 2023-24 Pakistan exported goods worth $661 million to Bangladesh, while its imports were only $57 million, according to the Trade Development Authority of Pakistan.

“Bangladesh is one of the most active economies as it is expected to surpass India in GDP per capita in the next 5-10 years,” Amin said, adding that Islamabad has much to learn from Dhaka, particularly in developing a vibrant small and medium enterprises sector, promoting women’s economic inclusion, and diversifying beyond textiles and other traditional areas.

Shuja Alam, former Pakistan high commissioner to Bangladesh, agreed with Amin. He said that while Islamabad and Dhaka are “natural allies,” both must work hard to cement rapprochement in ties.

Alam said Pakistan’s longtime ally China could help ensure longevity to Islamabad’s ties with Dhaka.

“Pakistan and China are close allies and since China maintains good ties with Bangladesh, it would welcome stronger and long-term Islamabad–Dhaka relations to strengthen its regional influence and curb India’s sway,” he said.

The former diplomat said to turn this opportunity into a “long-term partnership,” Pakistan and Bangladesh must enhance engagement at the ministerial level to translate it into economic benefits.

“Many Pakistanis initially invested in Bangladesh’s textile and other sectors, but hostile policies of the Awami League hindered success,” Alam noted.

Amin believed there is ample opportunity for Islamabad to increase trade with Dhaka.

“We have a good market there, for example motorcycles, bikes and others, which were dominated by Indians earlier,” he said. “Now, Pakistan has an opportunity to fill that vacuum.”

PROCEEDING CAUTIOUSLY

But Shahid Kiani, a former Pakistani ambassador who served in the country’s mission in Dhaka, urged Islamabad to proceed cautiously, warning that Hasina’s Awami League party still holds influence in Bangladesh which shares a border with India on three sides.

“Emotions alone cannot dictate foreign policy, improved people-to-people contacts through business, student, and youth exchanges, can strengthen Pakistan–Bangladesh relations,” Kiani said.

Reconciliation has its obstacles, as calls for Pakistan to apologize for the alleged 1971 killings of Bangladeshi civilians remain popular in Bangladesh. Pakistan’s military denies it carried out any such killings.

On Sunday, Bangladesh’s Foreign Adviser Touhid Hossain told reporters a after meeting his Pakistani counterpart Dar that all three unresolved issues had been raised, and Pakistan had presented its position. The three issues for Dhaka concern an official apology for the killings in the 1971 war of Bangladesh’s independence, the return of due assets, and the repatriation of stranded Pakistanis.

“Pakistan is an important neighbor of ours in South Asia. Our relationship with Pakistan is historical and diverse,” Hossain said. “In this context, at today’s meeting, we expressed a firm determination to advance our existing ties.”

During Dar’s visit, Bangladeshi media reported that enhanced ties with Pakistan need not be seen as antagonistic to India, rather they can serve as a “pragmatic” regional balancing tool.

Kiani said the previous Bangladeshi government of Hasina had suspended ties with Pakistan for too long and Pakistan has received this opportunity not because of India, but due to the historical connections and potential between both countries “despite unfortunate happenings of 1971.”

“Pakistan should capitalize on this chance by enhancing people-to-people, business-to-business, and government-to-government contacts to ensure the engagement is deep and lasting, not a one-time event,” he added.

But whether there will be significant cooperation between the former foes is not likely to be decided by the current government, Shomsher Mobin Chowdhury, Bangladesh’s former foreign secretary, told Arab News, as Yunus’s administration is expected to hold general elections in February 2026 and remains cautious in its steps.

“We know that interim government tenures are always short lived. How long will this one last — we do not know. So, Pakistan is showing its eagerness to establish its relations with Bangladesh ... The signal is coming from Pakistan, and we are being typically receptive,” Chowdhury said.

“Pakistan is trying to send a political message ... It is up to us to decide how we react to it in the midterm and long term. And it is for the next political government to decide what to do with it.”

Burhanul Islam, another former Pakistani diplomat, urged Islamabad to win Dhaka’s trust by respecting its people, culture and aspirations, noting that India’s ties with Bangladesh may not improve “soon.”

“I hope Islamabad and Dhaka will be able to resolve the issues of the past if they sit with an open mind, and with a positive approach to have long-term, sustainable friendly relations,” Islam said, adding that once a common text of apology is agreed upon, the question of compensation would become irrelevant.

“Both countries have to solve these issues of the past. Without it, moving ahead will face a lot of issues and hurdles.”