Islamabad 5 August: Bangladesh expressed keen interest in importing coal and limestone from Pakistan to address its growing energy and industrial requirements, according to discussions between Pakistan’s Commerce Minister Jam Kamal Khan and Bangladesh’s High Commissioner Iqbal Hussain Khan.
The talks, held in Islamabad, focused on strengthening bilateral trade, with a particular emphasis on Pakistan’s abundant mineral resources to support Bangladesh’s power plants and soda ash factories.
READ MORE: Pakistan Records Lowest Budget Deficit in 9 Years – FY25
Bangladesh, a rapidly growing economy with a 6.2% average GDP growth over the past five years, faces increasing energy demands driven by its export-oriented garment industry and population growth. With domestic coal production limited to 1 million tonnes annually, primarily from the Barapukuria mine, and natural gas reserves dwindling, Bangladesh aims to boost coal-fired power generation, which reached 17 terawatt hours in 2023, accounting for 21.1% of its electricity mix. The country’s coal imports surged to 12.7 million tonnes in 2023, mostly from Indonesia, but recent talks highlight Pakistan’s Sindh-based coal and limestone as viable options due to their proximity and cost-effectiveness.
High Commissioner Khan, following visits to Pakistan’s industrial hubs, noted strong interest from Pakistani business chambers in collaborating with Bangladesh. The discussions also covered agriculture, with Bangladesh proposing pineapple exports and Pakistan seeking to export mangoes, pending technical approvals. Additionally, both nations agreed to simplify visa processes to facilitate business travel and explored trade in textiles and halal-certified meat products.
READ MORE: British Pakistanis “key” to deepening Pakistan-UK trade ties
Pakistan, with 185 billion tonnes of coal reserves, including 175 billion tonnes in the Thar coalfield, has shifted toward utilizing domestic coal, producing 9.4 million tonnes in 2023 while importing 6.6 million tonnes. This makes Pakistan a potential supplier for Bangladesh’s needs, particularly for its planned coal-based power plants aiming to generate 21-25 million tonnes of thermal coal demand by 2025. However, concerns remain about the environmental impact of increased coal reliance, with Bangladesh’s power sector emissions rising to 60 million tons of CO2 in 2023, and Pakistan facing criticism for heavy metal contamination in Thar’s water aquifers.
The talks mark a step toward deeper industrial and energy cooperation, with both nations eyeing sustainable trade mechanisms to address energy security and economic growth.
