akistan and Bangladesh, two key economies of South Asia, share a long and complex history. Political differences have often overshadowed economic potential. However, recent developments indicate a growing interest in strengthening bilateral trade ties.

The rekindling of economic relations is not only a strategic move for the trade and industry but also a promising opportunity for the women entrepreneurs and female labour force. By fostering inclusive trade policies and reducing barriers, the two countries can open new pathways to sustainable development, economic growth and gender empowerment.

Trade between Pakistan and Bangladesh has faced fluctuations over the years. It has often been hindered by political tensions and tariff barriers. In the fiscal year 2022-23, the trade volume between the two countries stood at approximately $900 million, far below the potential of a combined population of over 400 million people.

Bangladesh exports garments, textiles, jute products and pharmaceuticals to Pakistan. Pakistan’s exports include cotton, textiles, machinery and chemical products. Recent dialogues between trade delegations, improvements in visa policies and proposals to remove non-tariff barriers reflect mutual interest in enhancing trade. The governments in both countries have expressed willingness to re-negotiate tariff structures and facilitate business-to-business engagement, a crucial step toward economic cooperation.

One of the most promising aspects of strengthening Pakistan-Bangladesh trade ties is the impact on women entrepreneurs. Both countries have seen a significant rise in female-led businesses, particularly in the textile, handicraft, fashion and e-commerce sectors.

According to the World Bank, women entrepreneurs in Bangladesh contribute significantly to the country’s thriving textile industry. In Pakistan, female-led businesses are growing in fashion design, organic products and handicrafts. By fostering trade linkages, women entrepreneurs from both countries can benefit in several ways.

Increased trade agreements will allow female-led businesses to expand their reach beyond local markets. Pakistani women entrepreneurs can tap into Bangladesh’s booming textile industry. Bangladeshi businesswomen can find new customers in Pakistan’s growing retail sector. Women-led enterprises can collaborate through trade exhibitions, online marketplaces and business summits. This will encourage knowledge-sharing, skill development and product diversification.

Platforms like Daraz (Pakistan) and AjkerDeal (Bangladesh) provide a foundation for cross-border digital trade. Women-led small and medium enterprises (SMEs) can use these platforms to export products without heavy reliance on traditional supply chains. Governments should introduce policies that facilitate women-led startups by reducing trade barriers, providing financial incentives and supporting business incubation programmes.

Apart from entrepreneurship, an enhanced trade relationship between Pakistan and Bangladesh will have significant implications for the female workforce. Women in both countries play a crucial role in the textile and garment sectors, which are major contributors to their economies.

In Bangladesh, nearly 80 percent of the workforce in the garment industry consists of women. In Pakistan, women’s participation in the textile and handicraft industries is steadily increasing.

Nearly 80 percent of the workforce in the garment industry in Bangladesh consists of women. In Pakistan, women’s participation in the textile and handicraft industries is steadily increasing. 

Increased trade will boost industrial output, resulting in more employment opportunities for women, particularly in textile factories, agriculture-based industries and digital enterprises. With greater international scrutiny and trade expansion, factories and enterprises will be encouraged to improve labor standards, ensuring safer and more equitable working conditions for female workers.

Trade agreements can include provisions for training programmes, scholarships and technical skill development initiatives aimed at enhancing women’s participation in value-added industries. Access to credit and financial services is a major challenge for women in both Pakistan and Bangladesh. Cross-border trade initiatives can include microfinance schemes and financial literacy programs to empower female workers and entrepreneurs.

While the potential for trade expansion is evident, there are several challenges that need to be addressed. Historical political differences have greatly impacted economic ties, thereby making diplomatic engagement and confidence-building measures essential.

High tariffs, complex customs procedures and non-tariff barriers such as regulatory restrictions and lack of transparency pose hurdles to trade growth. The absence of a direct banking channel, banking agreements and digital payment solutions between Pakistan and Bangladesh makes financial transactions difficult, thus hindering smooth trade.

Limited direct shipping routes and complex transport regulations raise the cost and time required for goods to reach their destination, making enhanced transport infrastructure and trade facilitation measures necessary. Women entrepreneurs often face gender-based barriers such as lack of representation in trade negotiations and limited access to financial resources that can be attributed to a lack of gender-responsive approach to trade agreements.

To fully capitalise on trade potential and promote women’s economic participation, the governments countries must take proactive steps. These include introducing special trade facilitation schemes that target female-led businesses and promote inclusive trade. Platforms must be established where women entrepreneurs from Pakistan and Bangladesh can connect, share experiences and explore joint business ventures.

Governments and private sector players should invest in cross-border e-commerce platforms to facilitate women-led digital businesses. Visa regulations must be relaxed for businesswomen and entrepreneurs to foster collaboration and knowledge exchange. Trade-related educational programmes, business incubation initiatives and leadership training for women can also help increase female participation in bilateral trade.

Strengthening Pakistan-Bangladesh trade relations presents a significant opportunity to boost economic growth, enhance regional integration and empower women entrepreneurs and workers. By focusing on inclusive policies, reducing trade barriers and fostering cross-border collaborations, both nations can create a win-win scenario.

The empowerment of women through trade will not only contribute to economic prosperity but also drive social transformation, leading to a more equitable and resilient South Asian economy. With the right strategies in place, Pakistan and Bangladesh can set an example of economic cooperation for the entire SAARC region so that gender inclusion, sustainable development and shared prosperity are ensured.

The writer is a research associate at the Economic Growth Unit of the Sustainable Development Policy Institute. She can be reached at mahnoor@sdpi.org