*Islamabad (24 August 2025):* Trade experts and business leaders havesuggested that Pakistan could generate an additional *$5 billion in annualexport revenue* if tariff barriers with Bangladesh are lifted and bilateraltrade relations are strengthened.
At present, trade between the two South Asian nations remains far below itstrue potential, largely due to high customs duties and non-tariff barriers.According to economists, Pakistan’s textile, pharmaceutical, cement, andagricultural sectors hold strong export potential in Bangladesh’s rapidlygrowing market of over 170 million people.
“If both countries abolish tariffs and ease trade restrictions, Pakistan’sexports could easily rise to $5 billion annually within the next fewyears,” said a senior official from the Pakistan Business Council.
Untapped Market Opportunities
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*Textile and Garments:* Bangladesh’s booming apparel industry imports large quantities of raw cotton, yarn, and fabrics. Pakistan, being one of the world’s top textile producers, can become a key supplier. –
*Pharmaceuticals:* With Bangladesh’s increasing healthcare demand, Pakistan’s pharmaceutical sector can expand its footprint significantly. –
*Construction Material:* Cement, ceramics, and steel products from Pakistan can cater to Bangladesh’s infrastructure and housing needs. –
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*Agriculture & Food:* Export of fruits, vegetables, and processed food items can help Pakistan strengthen its agri-based trade.
Current Trade Volume
Currently, trade between Pakistan and Bangladesh hovers around *$800million annually*, with Pakistan mainly exporting cotton, textiles, andchemicals. Analysts believe that tariff-free trade could increase thefigure sixfold.Regional Cooperation Needed
Experts stress that enhanced trade ties will not only benefit botheconomies but also promote regional cooperation within South Asia. Theyurge governments to initiate talks for a *Preferential Trade Agreement(PTA)* or even consider joining a broader *Free Trade Agreement (FTA)*under SAARC frameworks.Way Forward
Business chambers have called on policymakers in Islamabad and Dhaka toresolve trade disputes, simplify customs procedures, and encourage privatesector partnerships. If such reforms are implemented, Pakistan’s exportsector could experience a significant boost, creating new jobs andstrengthening foreign exchange reserves.