Bangladesh strengthens trade & maritime ties with Pakistan: Why India should be concerned

Bangladesh interim government Chief Adviser Muhammad Yunus (Courtesy: Reuters photo)

Trade and maritime ties between Bangladesh and Pakistan are gaining momentum - raising concerns for India - with a second cargo vessel from Karachi docking at Bangladesh’s Chittagong port this week.

According to reports in Bangladeshi media, the Panama-flagged ship MV Yuan Xiang Fa Zhan entered Bangladeshi waters on Sunday, carrying 811 containers filled with essential industrial materials such as soda ash, dolomite, marble blocks, garments raw materials, sugar and electronic products.

Notably, the first cargo docked at the port earlier in November which marked the first direct maritime trade link between Pakistan and Bangladesh in 53 years. For Pakistan, it represents a significant breakthrough in the historically fraught diplomatic relations between the two nations, particularly following Sheikh Hasina’s ouster and the subsequent regime change in Bangladesh.

The new Bangladeshi government under Nobel laureate Muhammad Yunus in a notable policy shift abolished the requirement for mandatory physical inspections of imports from Pakistan in October.

The arrival of this cargo comes shortly after a meeting between Bangladesh's interim leader, Professor Muhammad Yunus and Pakistan’s Prime Minister Shehbaz Sharif in Egypt’s capital city Cairo. During the talks, both leaders pledged to strengthen bilateral ties, signaling a shift in Bangladesh’s foreign policy under Yunus, who assumed office in August 2024.

Why is it a concern for India?

Chittagong Port, strategically located in the Bay of Bengal, has been a focal point for India’s regional security interests. India has historically leveraged its strong relations with Sheikh Hasina to monitor activities at the port. Notably, in 2004, Indian authorities intercepted a shipment of Chinese arms allegedly orchestrated by Pakistan’s Inter-Services Intelligence (ISI) and intended for the banned United Liberation Front of Asom (ULFA).

Bangladesh's recent decision to remove mandatory physical inspections for cargo from Pakistan has added to India’s concerns. Previously, restrictive trade policies required Pakistani shipments to be routed through third-party ports in Malaysia, Singapore or Sri Lanka, enabling closer scrutiny.

India now fears that enhanced Pakistan-Bangladesh ties and direct maritime connectivity could facilitate the resurgence of Islamist extremism targeting India and aid insurgent groups in the northeastern states.

As Pakistan and Bangladesh strengthen their maritime and trade ties, India remains wary of the potential security challenges and shifting geopolitical dynamics in South Asia. With direct shipping routes now operational and policy shifts under Yunus, New Delhi’s strategic calculations in the region may require significant reassessment.

Yunus’ pro-Pakistan stance

Yunus, a vocal critic of Hasina's policies, has prioritised mending Bangladesh’s strained relations with Islamabad. In his recent meeting with Sharif, Yunus emphasised resolving longstanding issues from Bangladesh’s 1971 liberation war, during which the two nations were bitterly divided.

Sharif, calling Bangladesh a “brotherly country”, stressed the importance of a strategic partnership and expanding ties through trade, sports and cultural exchanges.