Pakistan and Bangladesh to establish ‘direct shipping link’

KARACHI – Pakistan and Bangladesh will work towards establishing a direct shipping line between the two countries to promote commercial and trade links. In ongoing discussions between the foreign secretaries of Pakistan and Bangladesh, a part of regular bilateral exchanges, the two sides will moot over the direct shipping issue in the next round of bilateral consultation to be held in the Bangladesh shortly, sources told Pakistan Today.
To give fresh impetus to bilateral trade relations while evaluating the implementation status of agreements made in previous rounds at the secretary level held in Islamabad, a meeting conducted by senior officials involving representatives of various stockholders in both countries is being held The important point to be made in the next round, sources revealed was the arrangement of direct shipping link between the two countries though direct consultation between Pakistan National Shipping Corporation and the Bangladesh Shipping Corporation. To enhance bilateral trade both countries require strong commercial shipping links with minimum shipping charges. Beside the shipping issue, the two countries are also focusing on various issues related to bilateral trade in various sectors including defence, cultural and educational links. In the previous round of consultation, both sides had agreed to redouble efforts to promote trade and investment including joint ventures and cooperation in the fields of agriculture, fisheries, livestock, science and technology, education and culture. It was also decided to initiate cooperation in counterterrorism and counter-narcotics as well as to take steps to ensure the facilitation of visas and enhancement of connectivity through strong direct shipping and better air links. Dhaka had earlier sought tariff waiver on Bangladeshi products entering Pakistan while signing a bilateral Free Trade Agreement (FTA). According to sources, Pakistani textile sector could also break into new markets. Sources indicated Bangladesh enjoys preferential access to EU markets. Pakistan could be in a position to utilise Dhaka’s export capacity in knitwear sector, especially in terry-towel and home textile, with Islamabad facing a steep 25 percent duty barrier on export of these items. Pakistan could take advantage of Bangladesh’s free market access in EU under the generalised system of preference (GSP) scheme.
Though the balance of trade between the two countries is in favor of Pakistan, trade volume has been restricted to below $500 million. It is pertinent to mention that Bangladesh, has not objected the trade concession proposed by European Union to Pakistan in the first session of World Trade Organisation.