Pakistan, Bangladesh vow to strengthen trade ties, consular services

Consul General of Bangladesh in Dubai, Md. Rashedujjaman (third left), meets Consul General of Pakistan, Hussain Muhammad (second right), at the Consulate General of Pakistan in Dubai on January 13, 2025. (Facebook/ Pakistan Consulate Dubai)
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Updated 13 January 2025
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Pakistan, Bangladesh vow to strengthen trade ties, consular services

  • Pakistan and Bangladesh have sought to improve bilateral ties since former premier Hasina’s ouster
  • Established together as one nation in 1947, Bangladesh won liberation from Pakistan in 1971 with India backingEstablished together as one nation in 1947, Bangladesh won liberation from Pakistan in 1971 with India backing

ISLAMABAD: Islamabad and Dhaka have vowed to strengthen ties, particularly in trade and consular services, the Pakistan embassy said on Monday after the consul general of Bangladesh in Dubai paid a courtesy call on his counterpart from Pakistan. 

Pakistan and Bangladesh share a complex history, having been a single country known as East and West Pakistan until Bangladesh was born in 1971 after a war of liberation backed by Pakistan’s arch-rival and neighbor India. Nearly three million people were killed in the conflict.

Ties reached a new low in 2016 when Bangladesh executed several leaders of its Jamaat-e-Islami party on charges of committing war crimes in 1971. Pakistan called the executions and trials “politically motivated,” arguing that the convicts were being punished for taking a pro-Pakistan stance during the war. 

However, Islamabad’s ties with Dhaka improved after Prime Minister Sheikh Hasina was ousted last year after student-led violent protests in the country. Hasina fled to India, which has cast a shadow over the relationship between Dhaka and New Delhi in recent months, with the former repeatedly demanding that India extradite the ousted leader.

“H.E. Md. Rashedujjaman, Consul General of Bangladesh in Dubai paid a courtesy call on H.E. Hussain Muhammad, Consul General of Pakistan, at the Consulate General of Pakistan today [Monday],” the Pakistani consulate said in a statement. 

“Welcoming the visiting Consul General, Mr. Hussain emphasized the importance of strengthening ties between Bangladesh and Pakistan, particularly in trade. Both Consuls General acknowledged the potential for collaboration and agreed to engage their respective consulates’ trade sections to further promote bilateral cooperation.”

Both sides also discussed various consular services including passport issuance, national identity cards, and visa procedures.

“Both Consuls General agreed to enhance information sharing and future collaboration regarding community services and public awareness initiatives,” the statement said.


Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says

Updated 57 min 40 sec ago
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Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says

  • State Bank says farm lending rose 16 percent year-on-year to Rs2.58 trillion
  • Inflation eased to 5.8 percent in January as GDP growth hits 3.7 percent in Q1 FY26

KARACHI: Pakistan disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during fiscal year 2024–25, a 16 percent increase from the previous year, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Thursday while chairing a meeting of the Agricultural Credit Advisory Committee (ACAC).

Agricultural financing is considered critical to Pakistan’s rural economy, where farming contributes nearly one-fifth of GDP and employs a large share of the workforce. The government has repeatedly emphasized expanding credit access to small farmers as part of broader efforts to boost productivity, stabilize food supply and support economic recovery under an IMF-backed reform program.

According to official data shared at the meeting, agricultural credit disbursement reached Rs2.58 trillion in FY25, marking a record high. In the first half of FY26 alone, banks disbursed Rs1,412 billion in agricultural loans, while the number of borrowers increased to 2.97 million.

“During fiscal year 2025, record agricultural loans of Rs2.58 trillion were disbursed, reflecting an annual growth of 16 percent,” the State Bank governor said, according to a statement issued after the meeting.

He added that Pakistan had regained macroeconomic stability and that the economy was moving toward sustainable growth.

The governor said GDP growth in the first quarter of FY26 stood at 3.7 percent, while full-year growth was projected between 3.75 percent and 4.75 percent.

He also noted that headline inflation had declined to 5.8 percent in January 2026.

The committee reviewed measures to further expand credit access, including greater use of the central bank’s Zarkhez-e scheme to facilitate agricultural lending. Members also discussed promoting electronic warehouse receipt financing to enhance post-harvest liquidity and reduce distress sales of crops.

The statement said the purpose of electronic warehouse receipt financing was to “reduce forced sales of crops and strengthen linkages within the agricultural market.”

Agricultural lending has been a focus of Pakistan’s financial inclusion strategy, particularly as policymakers seek to improve rural incomes, stabilize food prices and strengthen export-oriented crop production amid broader economic reforms.