Key Takeaways
- Pakistan to start trial exports of locally assembled vehicles to Bangladesh this month.
- 100 vehicles to be exported under a memorandum of understanding signed in July.
- Two models of globally recognized vehicles produced in Pakistan will be exported.
Pakistan is set to begin trial exports of locally assembled vehicles to Bangladesh this month, with 100 vehicles planned for shipment on a trial basis in 2026 under an agreement between a Pakistani automaker and a Bangladeshi business group.
The two sides signed a memorandum of understanding in July for the potential export of 5,000 vehicles to Bangladesh. Under the initial arrangement, 100 vehicles will be exported during 2026, starting in September, while larger-scale commercial exports are planned to begin next year.
Two models of globally recognized vehicles produced in Pakistan in partnership with SAIC Motor China will be exported to Bangladesh this month. The move marks a new step in cooperation between the Pakistani and Bangladeshi auto industries and could open a new market for vehicles assembled in Pakistan.
According to the exporting company’s CEO, Jiang Qiang Shao, the two models were previously exported to Bangladesh from China. Following discussions with SAIC Motor’s headquarters, the company secured support to shift the business model from CBU exports from China to CKD exports from Pakistan to Bangladesh.
Shao said the CKD model could benefit both sides. The Bangladeshi distributor could reduce import duties by importing vehicles in knocked down form, while Pakistan would gain an opportunity to develop a sustainable automotive export business.
MG Pakistan will also provide its Bangladeshi partner with guidance on vehicle assembly, general assembly and quality control procedures. A local engineering team will travel to Bangladesh to provide technical guidance and engineering services.
Shao added that Pakistan could expand its automotive exports over time because of its cost advantages and skilled workforce. He said the Bangladesh agreement could make the brand the first in Pakistan to establish sustainable automotive exports, with the opportunity extending beyond vehicles to technology and engineering services.
The two models were previously exported to Bangladesh from China.
Jiang Qiang Shao, CEO of the exporting company
The Bangladeshi distributor could reduce import duties by importing vehicles in knocked down form, while Pakistan would gain an opportunity to develop a sustainable automotive export business.
Jiang Qiang Shao, CEO of the exporting company
