Bangladesh Open to Regional Grouping With Pakistan, Without India
Bangladesh’s Foreign Affairs Adviser Touhid Hossain has indicated that Dhaka could strategically join a regional bloc with Pakistan that excludes India. The statement comes days after Pakistan’s Foreign Minister Ishaq Dar hinted at forming a new trilateral grouping involving Bangladesh, China and Pakistan.
Speaking on Wednesday, Hossain told news agency Bangladesh Sangbad Sangstha (BSS) that “it is strategically possible for Bangladesh to join a regional bloc with Pakistan excluding India.”
However, he noted that such a strategic grouping might not be feasible for Bangladesh’s neighbors Nepal or Bhutan.
“It is possible for us [Bangladesh] strategically… [but] it is not possible for Nepal or Bhutan to form a grouping with Pakistan excluding India,” Hossain said.
Pakistan Proposes New Trilateral Framework
Hossain’s remarks follow Pakistan Deputy Prime Minister and Foreign Minister Ishaq Dar’s recent claim that a new Bangladesh-China-Pakistan trilateral has already begun. Dar suggested the grouping could expand to include additional regional and extra-regional countries.
Commenting on Dar’s statement, Hossain added that “perhaps at some point this could see some progress,” though he declined further comment, saying he had only learned about it through media reports, according to BSS.
Warming Pakistan-Bangladesh Relations Post-Hasina
Following Sheikh Hasina’s ouster in August 2024, there has been a swift and visible warming of Pakistan-Bangladesh ties across multiple sectors including trade, defense, diplomacy and infrastructure.
After decades of bilateral strain stemming from the 1971 Liberation War, cooperation between the two countries is accelerating under Muhammad Yunus’s interim government.
First China-Bangladesh-Pakistan Trilateral Meeting
The discussion of strategic recalibration comes months after a crucial China-led meeting. In June, China, Bangladesh and Pakistan held their first trilateral meeting at the official level in Kunming, China.
At the meeting, the three sides agreed to deepen cooperation in:
- Trade and investment
- Healthcare
- Infrastructure development
- Debt management
The parties also agreed to establish a joint working group to build trust and enhance regional stability.
Potential SAARC Alternative in the Works
Around the same time as the Kunming meeting, reports emerged that Pakistan and China were working to create a new regional bloc to replace the South Asian Association for Regional Cooperation (SAARC), in which India is a prominent member.
SAARC has remained mostly dormant since the Pakistan-sponsored terror attack in Uri in 2016.
According to Pakistani daily The Express Tribune, talks on the regional bloc between Islamabad and Beijing were at an advanced level in June.
“The ultimate goal of the meeting in Kunming on June 19 was to invite other South Asian countries, which were part of Saarc, to join the new grouping,” The Express Tribune reported.
Shift From Hasina’s Balanced Foreign Policy
Sheikh Hasina had balanced ties with multiple countries, including India and China, securing deals for Bangladesh from all parties without antagonizing New Delhi, Beijing or Washington, according to a Dhaka University expert who spoke to India Today Digital in 2023.
That balance appears to have shifted, with Dhaka now gravitating toward Islamabad and Beijing.
This marks a clear departure from Hasina’s foreign policy, in which India was a key partner. With Pakistan now pitching an expanded South Asian framework that excludes India but involves Beijing, it hints at the growing Chinese strategic footprint in South Asia.
Key Takeaways:
- Bangladesh’s Foreign Affairs Adviser says joining a Pakistan-China bloc without India is “strategically possible”
- Pakistan’s Foreign Minister previously suggested a Bangladesh-China-Pakistan trilateral has already begun
- The three countries held their first official trilateral meeting in Kunming, China in June
- Bangladesh-Pakistan relations have warmed significantly since Sheikh Hasina’s ouster in August 2024
- The proposed grouping could serve as an alternative to the dormant SAARC bloc
![# Why India’s Stock Market Is at a Turning Point — and What It Means for 2026 Recent data points show Indian equity markets poised for a potential rebound — with benchmark indices likely to open higher on optimism around corporate earnings growth. That’s not just a short-term mood boost: it reflects deeper shifts in how investors are valuing India’s economic momentum as the new year begins. ([Reuters][1]) But beyond the surface bump in futures, the evolving narrative of Indian markets tells a story of **winners and losers, cross-currents in flows, and risks that could shape finance and business well into 2026**. --- ## 📈 The Bulls: Domestic Growth and Earnings Momentum **Why optimism is rising** After a subdued 2025 — when India’s equities lagged global peers despite strong macro data — analysts increasingly point to earnings as the driver of the next leg up. Corporate profits have started to improve across sectors, and futures pricing indicates that benchmarks could open higher, even as heavyweights like Reliance Industries and HDFC Bank temper gains. ([Reuters][1]) Broader forecasts outside the immediate news support this view. Brokerages such as Jefferies and Morgan Stanley see profit per share growth accelerating in FY27 and beyond, with key sectors like banking, autos and telecom leading the charge. Some projections even envisage **double-digit EPS growth** as a foundation for fresh market advances. ([ETCFO.com][2]) **Who benefits** * **Corporate India with strong domestic demand:** banks, automobiles, telecom companies and consumer discretionary players are set to reap gains from improving sales and margins. * **Domestic institutional investors:** with foreign flows fickle, robust month-by-month inflows from mutual funds, pension funds and insurance investors help underpin prices and limit volatility. ([ETCFO.com][2]) * **Mid- and small-caps (conditional):** these segments may benefit if earnings trends broaden beyond blue-chips, though valuations and liquidity still matter. --- ## 🧠 A Cautionary Signal: Foreign Investors and External Risks **Foreign money remains a mixed story** While domestic flows are structurally strong, foreign institutional investors (FIIs) have been selling Indian equities for much of 2025. That pattern has left India’s market ownership among the lowest levels in years — a vulnerability if earnings disappoint or global risk aversion rises. ([Business Recorder][3]) Trade tensions with the U.S., particularly over tariffs and energy imports, have also clouded sentiment, capping gains despite stronger earnings figures. Geopolitical influences aren’t short-term headlines: they shape how willing international capital is to commit long-term. 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([Fortune India][6]) --- ## 🧩 Hidden Implications: Currency & Foreign Exchange Another critical piece rarely highlighted in headlines is the currency picture. The Indian rupee has shown volatility against a strengthening dollar, partly due to global rates and capital flows. Central bank intervention offers some support, but a weaker currency can squeeze corporate profits, especially for import-dependent firms. 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