Pakistan is set to export a record 100,000 tonnes of rice to Bangladesh, highlighting a significant improvement in bilateral trade relations since the political changes in Bangladesh last year. The Trading Corporation of Pakistan (TCP) issued a tender last week for this largest-ever consignment, building on the first batch of 50,000 tonnes exported earlier in 2025. This government-level trade began in February and signals growing cooperation between the neighboring states.

The tender requires rice sourced from recent Pakistani crop stocks, with bidding firms expected to meet quality standards and ship the rice within 45 days after contract award. Conditions stipulate minimum bid quantities, and tenders close on November 28. Pakistani exporters see this as a positive development amid a 28% drop in rice exports in the first fiscal quarter of 2025-26, faced with competition from India, which lifted its rice export restrictions last year.

Rice miller Waqar Ahmed noted that easing trade barriers with Bangladesh could revitalize Pakistan’s rice export market. The recent removal of basmati rice minimum export pricing and zero-rated export policies have challenged exporters, but opportunities remain especially in the American market where Indian rice faces higher tariffs.

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The caretaker government of Bangladesh under Muhammad Yunus has pursued stronger trade engagement with Pakistan, facilitating agreements including use of Karachi Port Trust to enhance connectivity with South Asia and Central Asia. The October 2025 Joint Economic Commission in Dhaka underscores shared ambitions to deepen economic ties and expand markets for both countries.

This large-scale rice export deal reflects Pakistan’s strategic role in regional agricultural trade and food security, potentially stabilizing prices in Bangladesh and fostering future trade collaborations. With efficient logistics and careful coordination, the partnership may also encourage further bilateral commerce beyond rice, strengthening ties between the two South Asian neighbors.

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