Bangladesh has now decided to select Pakistan to import 15,000 metric tons of sugar on a government-to-government (G2G) basis. He has taken this step to import sugar from PK due to a massive shortage of sugar. This request highlights the strengthening of trade ties between the two nations, as Bangladesh desires diversification in imports do not solely rely on a single country.
Sources revealed that in Pakistan’s Ministry of Commerce, this development follows Bangladesh’s earlier import of 25,000 metric tons of sugar from Pakistan through private sector channels in December. The shift towards Pakistan as a key supplier has been facilitated by Pakistan’s surplus sugar stocks, allowing the country to capitalize on its capacity to export under federal government approvals. These exports not only help balance domestic inventories but also contribute to generating valuable foreign exchange for Pakistan.
Beyond sugar, the two nations are exploring broader trade opportunities. Negotiations are in the final stages for the export of “50,000” metric tons of rice from Pakistan to Bangladesh. This rice export, being facilitated by the Trading Corporation of Pakistan, is likely to be finalized in the coming week. Bangladesh has shown its interest in importing rice on a “G2G basis” via its Trading Corporation of Bangladesh, further highlighting the growing economic cooperation between the two countries. Â
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In terms of the sugar deal, TCB has reached out to Pakistani authorities with specific requirements. The request specifies refined white sugar from Pakistan’s current crop, meeting high-quality standards, including an ICUMSA rating of no more than 45 and compliance with public health regulations. Bangladesh has sought a Cost and Freight (CFR) price offer for delivery at Chattogram port. On Pakistan’s end, the TCP will manage the logistics and export arrangements.
Meanwhile, TCP is also handling rice exports to Bangladesh. On the 6th of Jan 2025, it floated two tenders for 100,000 metric tons of rice, split evenly between long-grain white rice (IRRI-6) and non-basmati parboiled rice. For the IRRI-6 rice, 11 exporters submitted bids ranging from $498.40 to $523.50 per metric ton, though three bids were declared non-responsive. Notably, no bids were received for the non-basmati parboiled rice.
The ongoing dialogue between Pakistan and Bangladesh highlights their mutual interest in fostering stronger trade ties to meet their respective economic needs, with sugar and rice serving as critical commodities in this collaboration.