ISLAMABAD: Gwadar Port can help Bangladesh boost trade, says a report published by WealthPK on Monday
The strategically positioned Gwadar Port has potential to promote regional and international trade and commerce connectivity.
The development of the deep-sea port through the China-Pakistan Economic Corridor is going to provide a new dimension to trade relations among the countries.
Like other countries of the region, Bangladesh, one of the fastest-growing economies in South Asia, also stands to benefit a lot from the Gwadar Port as it will provide Dhaka with the shortest route to some of its trading partners.
Thanks mainly to its flourishing clothing sector, Bangladesh, with its GDP of $324.2 billion in 2020, is a significant exporter of ready-made garments worldwide, WealthPK reported.
As Dhaka largely relies on China for its cotton imports and also exports a variety of goods to Beijing across the Malacca Straits, it has to rely on the port of Singapore, which is prohibitively costly for cotton imports from western China.
Besides, the country also imports cotton from Pakistan and Central Asian countries, which costs it heavily in the absence of direct connections or shipping lines with these countries.
So, the Gwadar Port can help the country save the heavy transportation costs incurred on shipment of goods. Probably, the time has arrived for Dhaka to take advantage of this opportunity.
There are many positive reasons for Bangladesh to use Gwadar Port to expand its commercial and trading relations with Afghanistan, Central Asia, West Asia and as far as the Eurasia.
The Gwadar Port has the potential to establish connections between the free trade zones of Association of Southeast Asian Nations and the South Asian Association for Regional Cooperation (SAARC), which can greatly benefit Bangladesh, which is a member of SAARC.
Bangladesh may readily access Central Asian countries for its imports of oil and gas by using the Gwadar Port, which links with Kashgar region in China’s Xinjiang and onwards to CARs through a 2,442 kilometres route, WealthPK reported.
Moreover, the country would be able to cash in on its position in the Asian markets for exports of its apparel, leather, frozen meals, jute, pharmaceuticals products, mangoes and potatoes.
As Pakistan, Sri Lanka, and Bangladesh are active participants of China’s Belt and Road Initiative, Dhaka can also connect through the Sri Lanka ports with rest of the countries.
Bangladesh’s connectivity with Gwadar Port will surely go a long way in enhancing bilateral relations between Dhaka and Islamabad as their leaders have committed to improving their relations.
Since three to four years ago, Pakistan and Bangladesh have seen a marked improvement in their relations after Dhaka’s announcement to pursue its constitutional “friendship to all and malice to none” diplomacy with Islamabad.
According to WealthPK research, this warming of relations has helped improve the trade volume between the two countries, which has surged to reach $856.36 million from 2017 to 2018, a rise of 18.61% in a single year. In 2019, commerce increased even further, reaching $875.58 million. However, due to Covid 19, the trade volume decreased in 2020 and increased in 2021 by $52.28 million.
This is highlighted in the following graph.The agreement signed by Pakistan, Afghanistan, and Uzbekistan to launch a multibillion-dollar train project will also ensure Bangladesh’s access to Central Asian states and Russia through the land route. –INP
