Photo : Dawn
NIAS Area Studies
PAKISTAN READER
Photo : Dawn
In Focus
Pakistan’s Foreign Secretary in Bangladesh: Growing bilateral ties post Sheikh Hasina government
What happened?
On 17 April, Dhaka hosted the sixth round of Foreign Secretary Level Consultation (FSLC) between Pakistan and Bangladesh. Pakistan’s Foreign Secretary Amna Baloch led the delegation to Bangladesh and was received by Ishrat Jahan, Director General of foreign ministry in Bangladesh.
Who all did Pakistan’s Foreign Secretary meet in Bangladesh? What did they discuss?
Pakistan’s Foreign Secretary met head of Interim government of Bangladesh Muhammad Yunus. Emphasizing the need to remove obstacles in the bilateral relationship, Yunus said “we kept missing each other for a long time as our relationship was frozen. We have to overcome the barriers.” Baloch and Yunus delved into the steps to revitalize South Asia Association for Regional Cooperation (SAARC). Yunus had earlier raised the issue of revitalizing SAARC and had asked for the “support” from Islamabad. The two also deliberated on the need to strengthen ties between Bangladesh and Pakistan’s youth. Baloch also met Dhaka’s foreign secretary delegation which was led by Foreign Secretary Mohammad Jashim Uddin. The two sides discussed issues related to politics, economy, trade, partnership in “agriculture, environment,” defence cooperation, cultural ties etc.
In addition to that, Baloch met Touhid Hossain who is the advisor on Foreign Affairs. The two sides delved into “regional” matters, revitalization of SAARC, and “trade” ties.
Growing Pak-Bangladesh ties post Sheikh Hasina’s government
Pakistan-Bangladesh ties are on the upswing after ouster of former Bangladesh PM Sheikh Hasina. There is a renewed interest for collaboration in defence. In January, Bangladesh’s high-ranking army officials had travelled to Pakistan for the very “first time.” In February, Pakistan and Bangladesh restarted “government-to-government trade.” The “direct private trade” was reinstated in November 2024.
In March, Yunus and PM Sharif held talks over telephone, in which they reiterated their resolve to enhance bilateral ties. After, the departure of Hasina’s government, there has been a significant improvement in trade ties. Partnerships in education sector are also on the upswing between the two countries. Pakistan has announced 300 “fully funded scholarships” especially for students from Bangladesh.” For increasing people to people contact, Dhaka has simplified visa norms for Pakistani citizens to travel to Bangladesh. The two sides are also looking towards starting non-stop flights.
What is the response from the civil society to Bangladesh-Pakistan rapprochement?
On 18 April, an editorial in The Express Tribune titled “The Dhaka dimension,” discussed the revitalization of Bangladesh-Pakistan relations. The editorial expresses content over how Pakistan-Bangladesh relations are on the upsurge. As per the editorial, Yunus had acknowledged the fact that hostility between the two countries must cease to exist and understood the capacity which the two countries have with regards to strengthening their deep rooted cultural and religious ties. The editorial terms ouster of Sheikh Hasina’s government in 2024 as “second liberation.” The editorial advocates for revitalization of SAARC. Further, it also calls for “intellectual collaboration” between Universities of Pakistan and Bangladesh.
What next?
Deputy PM and Foreign Minister would be heading towards Dhaka on 22 April after his visit to Kabul. Dar would be the Pakistan’s first foreign minister who would travel to Bangladesh for a “bilateral visit.” As per Bangladeshi media houses, foreign secretary’s visit was a precursor to Deputy PM and Foreign Minister Ishaq Dar’s proposed visit to Bangladesh
“Pakistan, Bangladesh reignite ties after 15-year hiatus,” Dawn, 18 April 2025
Mariana Baabar, “Pakistan, Bangladesh revive high-level talks after 15 years,” The News International, 18 April 2025
“Top diplomats break the ice in Dhaka after 15 years,” The Express Tribune, 18 April 2025
Kamran Yousaf, “Dar to visit Kabul, Dhaka,” The Express Tribune, 18 April 2025
“The Dhaka dimension,” The Express Tribune, 18 April 2025
In Brief
POLITICS & GOVERNANCE
On hard state approach:
“If the state uses unconstitutional means in the province, there will be blowback from those affected,” argues an editorial in Dawn
On 18 April, an editorial titled “Political solution” in Dawn emphasized the need to adopt a political dialogue approach versus a ‘hard state’ one as the latter will prove counter-productive. This is because violence begets violence. The editorial highlighted that separatists resort to terrorism to fulfill their goals, and the state has historically responded with force. On the other hand, peaceful protestors are often sidelined. Such approaches have not yielded a solution to Balochistan’s problems as both parties grow disillusioned from the State. In this scenario, the government should give alternate approaches like inclusive development, reconciliation, and dialogue a shot. The editorial suggested that the government should begin by differentiating between peaceful protestors and those who take up arms. It also suggested that both should be dealt with accordingly to forward the “Baloch cause.” Secondly, it must acknowledge its mistakes. For instance, addressing issues like violation of fundamental rights and enforced disappearances among others could be a starting point. (“Political solution,” Dawn, 18 April 2025)
On violence in Kurram: “Peace and normalcy continue to remain unattainable in the Kurram District of Khyber Pakhtunkhwa,” laments an editorial in The News International
On 18 April, an editorial titled “Kurram quagmire,” in The News International lamented the unattained peace and normalcy in Kurram, even months after a truce between the warring factions. It cited a recent incident where traders in Parachinar announced a shutdown strike against the Parchinar-Thull road closure, the only road to Kurram’s main city. Prior to this, they launched a sit-in for nine days outside Parachiner, demanding the reopening of major roads. Moreover, traders have complained that trucks in aid convoys charged large sums of money during a crisis. This instability has resulted in a scarcity of essential goods in the region, impacting healthcare and education. It is just a small glimpse into the larger issue of violence and land disputes that have troubled the district for decades. While many peace agreements have been signed, they haven’t proven effective in the long term. On the political front, relations between KP and the centre have been “rocky” and particularly bad between the government, Pakistan Tehreek-e-Insaaf, and Imran Khan. “The KP and federal governments might not be able to solve the long-term sectarian and land issues in Kurram in the immediate term.” But they could set their differences aside and for the people of Kurram. (“Kurram quagmire,” The News International, 18 April 2025)
ECONOMY
Highest current account surplus recorded in March
On 17 April, according to data compiled by the State Bank of Pakistan, March witnessed its highest current account surplus of the July-March period of the ongoing fiscal. A record USD 1.195 billion was accounted for, up USD 363 million collected in the same period last year. Additionally, March’s remittance inflows reached USD 4.1 billion, prompting the SBP to revise its annual remittance target at USD 38 billion from USD 35 billion for fiscal 2025. However, the trade deficit of goods and services has widened to USD 21.05 billion in the July-March 2025 period, compared to USD 18.36 billion in the same period of the previous year. This is owing to the USD 4.33 billion expansion of import volume in the last 9 months, from USD 43.39 billion to USD 39.06 billion. Meanwhile, the Foreign Direct Investment (FDI) grew by a modest 14 per cent, at USD 1.64 billion in the July-March 2025 period. The government has struggled to bring in FDI over the last three years however, it continues to pin hope on Middle Eastern countries to fill this gap in Pakistan. Additionally, the SBP’s foreign reserves as of last week declined by USD 127 million primarily due to external debt reimbursements. (Shahid Iqbal, “Record USD 1.2 billion surplus in March,” Dawn, 18 April 2025)
Textile and clothing exports rise by 9.3 per cent: PBS data
On 17 April, Pakistan’s Bureau of Statistics data indicated a surge in textile and clothing exports by 9.38 per cent in the first nine months of the ongoing fiscal. In monetary terms, the exports grew to USD 13.62 billion during July-March 2025, up from USD 12.44 billion recorded a year ago. In March alone, exports grew by 9.97 per cent at USD 1.43 billion, compared to USD 1.30 billion last year. These developments come as exports of textiles and clothing has suffered for in the last two years. Structural issues are to blame as exporters have been demanding early release of rebates and refunds that have been pending for months. (Mubarak Zeb Khan, “Textile exports rise 9.3pc in July-March,” Dawn, 18 April 2025)
Commercial banks pledge PKR 1.275 trillion to tackle circular debt in power sector
On 17 April, sources reported by The News International revealed that major commercial banks of Pakistan have signed a rescue plan for the power sector by injecting new capital to tackle the circular debt crisis and refinance existing debt. 18 banks will extend PKR 658 via Pakistan Holding Company for refinancing, and a new loan worth PKR 617 billion will be advanced to the Central Power Purchasing Agency under the deal. The largest lenders include National Bank of Pakistan, Habib Bank, United Bank, and many more. These funds will be directed to reduce a segment of the PKR 2.5 trillion debt stock, which has strained public finances and blocked the power sector’s liquidity. The loan will be sanctioned for six years, at a 10.5 per cent - 11 per cent interest rate. However, consumers will bear the costs by paying a debt servicing surcharge of PKR 3.23 per unit of electricity. (Erum Zaidi, “Banks pledge whopping Rs1.275tr lifeline to power sector: Pakistan posts record $1.2bn CA surplus on surging remittances,” The News International, 18 April 2025)
EXTERNAL
Pakistan and Hungary sign “accords of cooperation” to foster bilateral ties
On 17 April, Deputy Prime Minister and Foreign Minister Ishaq Dar met Hungary’s Minister for Foreign Affairs and Trade Péter Szijjártó who is in the country on an official visit. Dar described Pakistan and Hungary as “trusted friends and partners, with ties rooted in shared understanding of peace and development.” Both sides also engaged in “delegation-level” talks and expressed an interest in furthering cooperation in areas like “agriculture, healthcare, Information Technology and industrial manufacturing.” Among other agreements signed, the requirement of visa for diplomatic passport holders was also revoked.
Szijjártó lauded the move and reiterated the commitment to deepening bilateral ties between the two countries. He further stressed on the need for “mutual respect” in international relations and criticized “judgmental attitudes.” Notably, Pakistan and Hungary are commemoration the 60th anniversary of their diplomatic relations.
On the same day, Hungary backed Pakistan’s Generalized Scheme of Preferences Plus status with the EU amidst the inking of several agreements and MoUs. Hungarian Foreign Minister Péter Szijjártó said: “Hungary stands up for the extension of the GSP+ programme, which means a special tariff-free regime of trade between the European Union and Pakistan beyond 2027 as well.” Presently, Pakistan’s GSP+ status extends up to 2027 in exchange for abiding by 27 international conventions on human and labor rights, environment, and governance. In the past, the EU has raised concerns regarding Pakistan’s approach to political opposition, court martial of civilians, restrictions on freedoms, and enforced disappearances. Against this backdrop, the EU will conduct a biannual review of the scheme, possibly in June 2025. Hence, Pakistan’s status may be at risk if there is no visible progress, traders warn. Separately, the Hungarian remarks come as the country’s “strained ties” with the EU. The latter has denounced the erosion of democratic standards, judicial independence and press freedom under the Viktor Orbán administration. Besides, Hungary has also blocked consensus on the union’s foreign policy, including sanctions against Russia, driving other EU members to criticize its alignment with Moscow and Beijing. (“Pakistan, Hungary agree to deepen bilateral ties,” The Express Tribune, 18 April 2025; “Hungary backs GSP+ status for Pakistan,” Dawn, 18 April 2025)
Pakistan and Russia agree to build “long-term multi-dimensional partnership”
On 17 April, Russia’s Deputy Foreign Minister Sergei Ryabkov met Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar. Ryabkov is in Pakistan to lead Russia’s delegation at the 15th round of the Pakistan-Russia Consultative Group on Strategic Stability. In a Foreign Office statement, Dar reiterated Pakistan’s “strong commitment” to deepening ties with Russia. Both sides also agreed to “pursue a long-term, multi-dimensional partnership spanning trade, energy, security, culture, education and people-to-people exchanges.” Pakistan-Russia relations have witnessed a massive impetus in recent years with collaboration in areas like “economic, military, and energy.” This growing partnership is reflected in talks on the supply of liquefied natural gas (LNG), the Pakistan Stream Gas Pipeline project, high-level state visits and signing of eight agreements in 2024 at the 9th session of the Pakistan-Russia Inter-Governmental Commission. Significantly, Pakistan’s trade with Russia surpassed USD 1 billion in 2024. There has been an expansion of military cooperation with joint military drills like Druzhba VII. (Baqir Sajjad Syed, “Pakistan, Russia agree to advance partnership,” Dawn, 18 April 2025)