Meddling in Bangladesh costs Pakistan dearly; is supporting Yunus a losing proposition for Asim Munir?

Islamabad: When Sheikh Hasina's government was overthrown in Bangladesh in August 2024, Pakistan was among the happiest. This happiness wasn't without reason. The interim government led by Muhammad Yunus opened Bangladesh's doors to Pakistan. What hadn't happened in the last 50 years happened in six months, and for the first time since the creation of Bangladesh, direct maritime trade began between Dhaka and Islamabad. But within a year, Pakistan's friendship with Bangladesh has started to prove costly. Pakistan is incurring losses in trade with Bangladesh.

What do we know about Pakistan’s trade deficit?

The State Bank of Pakistan has released figures for the first six months (July-December) of the financial year 2025-26. According to the latest figures, Pakistan's trade deficit with nine neighboring countries has increased by 44.42% in six months. It has now reached $7.683 billion, compared to $5.320 billion during the same period last year.

According to a Gulf News report, this increase in the trade deficit was due to a decline in exports. Pakistan is already facing significant tension with Afghanistan. Last year, soldiers from the armed forces of both countries were involved in direct clashes at the border, which were eventually resolved through mediation by Qatar and Turkey. Amidst the tension, Pakistan suspended all trade with Afghanistan on October 10, 2025. This has impacted regional trade flows.

What is the status of Pakistan’s trade with India?

Pakistan hoped that its new friendship with Bangladesh would open up new trade opportunities, but here too, it has faced disappointment. According to a report in the Pakistani newspaper Dawn, Pakistan's shipments to Bangladesh registered negative growth during the six-month period. Notably, Pakistan's trade with its long-standing friend has also decreased. Interestingly, during this period, Pakistan's exports to India have increased. Bangladesh-Pakistan relations are strengthening.

Relations between Bangladesh and Pakistan are strengthening since Mohammed Yunus came to power. The strengthening of defense ties is particularly significant. Earlier this month, Bangladesh Air Force Chief Hasan Mahmood Khan visited Pakistan. During his visit, he met with his Pakistani counterpart, Zaheer Ahmed Babar Siddhu, as well as Army Chief Asim Munir. During this meeting, the Pakistani Air Chief offered Bangladesh its JF-17 Thunder fighter jets. The JF-17 is a multi-role combat fighter jet developed jointly by Pakistan and China.