Bangladesh has resumed direct trade with Pakistan for the first time since 1971, with officials reporting that the first shipment of 50,000 tonnes of rice has left Port Qasim under a government-to-government agreement.
This new deal follows an improvement in diplomatic relations, after an interim government led by Nobel laureate Muhammad Yunus came to power in Bangladesh following protests that ousted former Prime Minister Sheikh Hasina.
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Under the agreement, finalized earlier this month, Bangladesh will purchase white rice from Pakistan at $499 per ton through the Trading Corporation of Pakistan. The shipment will be delivered in two phases, with the remaining 25,000 tonnes expected to arrive in early March. However, this price is higher than the $474.25 per ton charged for Vietnamese rice, which Bangladesh currently imports.
The Bangladeshi government has been striving to stabilize the rice market amid recent price increases of 15-20%, with medium-quality rice selling at about 80 taka (approximately $0.66) per kilogram. To help control prices, the government is increasing rice imports from international markets through tenders and has eliminated import duties.
