Bangladesh and Pakistan resumed direct trade for the first time since Bangladesh gained independence from Pakistan in 1971. Under a government-to-government deal, 50,000 tonnes of rice were imported from Port Qasim, Pakistan.

“For the first time, a Pakistan National Shipping Corporation (PNSC) vessel carrying government cargo will dock at a Bangladeshi port, marking a significant milestone in maritime trade relations,” the report said.

The liberation war of 1971 and the splitting of Bangladesh previously known as ‘East Pakistan’ following a nine-month-long struggle had severed ties between the two nations.

However, as the Shiekh Hasina government was ousted following a student revolt in August 2024, the country has a potential for change. The interim government led by Nobel Laureate Md. Yunus had maintained close relations with Pakistan Prime Minister Shehbaz Sharif, on the other hand, there had been little engagement between Prime Minister Modi and Yunus. India has traditionally been Bangladesh's closest ally, particularly in security and economic matters. There is a noticeable shift in dynamics between the three nations, one that is not desirable to India.

During the tenure of Ms. Hasina, diplomatic relations between Pakistan and Bangladesh deteriorated due to her family’s historical grievances against the ruling class of West Pakistan. Moreover, her close relationship with India also contributed to the dysfunction of ties with Islamabad. In 2016 both the countries expelled diplomats from others.

The interim government headed by the advisor Mohammed Yunus had shown initiatives to improve the relationship with Pakistan. It had hosted several military meetings and drills with Pakistani delegations. The most notable was a high-level meeting between the Pakistani and Bangladeshi delegations in Rangpur, located strategically close to the Siliguri Corridor, this might sound alarms for New Delhi. There had been a resumption of direct flights to Islamabad, which also simplified the visa process for Pakistanis to further strengthen trade and economic relations.

Pakistan will also explore trade ties with Bangladesh to counterbalance India’s dominance in South Asian trade. India and Bangladesh share strong economic relations, but if Pakistan offers competitive trade incentives, then this might alter the regional economic dynamics.

However, the wounds of the 1971 genocide which is ingrained in the psyche of Bangladesh with many families seeking justice for war crimes. A significant number of Bangladeshi see separation from Pakistan as core to their national identity.

These recent developments have been seen as positive steps in fostering economic cooperation and reopening trade channels that have remained dormant for decades.