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Home Southern Asia Nepal

From Historical Ties to New Economic Partnership – Nepal Economic Forum

by Asia Today Team
November 26, 2025
in Nepal
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Nepal’s AI Future: A Choice Between Sovereignty and Dependency

Economic Spillovers of the West Asia Conflict: Implications for Nepal and the Urgency of Energy Transition


by

H.E. Ghanshyam Bhandari | November 25, 2025

Basic Overview

As shut neighbors, Nepal and Bangladesh have at all times loved wonderful relations characterised by great goodwill, solidarity, and respect. Nepal was the seventh nation to acknowledge unbiased Bangladesh in 1971. Though formal diplomatic relations had been established in 1972, the connections between our individuals, via commerce and cultural ties, predate that milestone. Our relationship is grounded not solely in geographic proximity but additionally in shared language, tradition, traditions, and lifestyle.

Our two international locations have at all times stood by one another in instances of want, whereas acknowledging one another’s aspirations and sensitivities. Rooted in a real spirit of neighborliness, our relationship can be a few comparable growth story. We’re co-authors of an evolving story of efforts and adventures, and challenges. These efforts and adventures have been at instances modest and at instances formidable however at all times deeply aligned, and in sync.

Having stated that, every time we mirror on Nepal-Bangladesh relations, we regularly communicate of the immense potential and prospects but additionally acknowledge the restricted progress achieved to this point. There’s a shared understanding that a lot stays to be completed. On this context, it will likely be helpful to establish clear guideposts aligned with the current realities and future priorities.

To unlock the true potential of this relationship, we have to be keen to rethink, reform, and realign our insurance policies and institutional frameworks. This requires a contemporary and forward-looking strategy — one which prioritizes the mutual good thing about our individuals.

Commerce and Connectivity

Whereas it’s true that our present financial engagements stay modest in scale, we have now nonetheless made vital headway in a number of key areas, together with commerce, funding, connectivity, and tourism. We’ve got been negotiating a Preferential Commerce Settlement (PTA) geared toward boosting our bilateral commerce. A devoted Commerce Negotiation Committee (TNC) has been tasked with negotiating the PTA textual content and finalizing product lists.

Along with this, it’s important to reinforce commerce and funding linkages, together with by eliminating or decreasing the opposite duties and costs (ODCs) and addressing logistical and procedural challenges. In parallel, we should additionally work in the direction of harmonization and standardization of customs procedures, commerce laws, digital requirements, and environmental insurance policies, that are vital to fostering a extra seamless and environment friendly buying and selling surroundings.

These efforts achieve added urgency as each our international locations are set to graduate from the Least Developed Nation (LDC) class by 2026. In fact, whereas commencement is a significant growth milestone for each our international locations, it additionally brings challenges, together with as a result of lack of worldwide assist measures. So, we proceed to share our experiences and classes realized, significantly with reference to clean transition methods, and work collectively for a clean, sustainable, and irreversible commencement.

Everyone knows, as is some other bilateral context, connectivity is the beating coronary heart of our relationship. At current, two airways – Biman Bangladesh and Himalaya Airways – are working as many as 13 direct flights per week between Kathmandu and Dhaka. Nevertheless, on the commerce entrance, the Kakkarvitta-Fulbari-Banglabandha hall stays the one operational land route.

We recognize Bangladesh’s gesture in granting Nepal entry to Mongla and Chittagong seaports. But, utilization of those ports has to this point been restricted, primarily because of distance and better transshipment prices. However we’re exploring methods to higher make the most of these ports for third-country commerce and broader connectivity targets.

On the sub-regional degree, ongoing negotiations underneath the Bangladesh, Bhutan, India, Nepal (BBIN) framework on the motion of cargo and passenger autos signify an important step for connectivity. We consider that the profitable conclusion of those discussions, by addressing one another’s issues, if any, might be a big milestone in the direction of reaching seamless street connectivity within the sub-region.

Vitality Cooperation

Once we deliberate on Nepal-Bangladesh ties, power cooperation is seen as a promising avenue. The implementation of the first-ever trilateral power-sales settlement amongst Nepal, Bangladesh, and India signed on the October 2, 2024 and the historic energy circulation of 40 MW hydroelectricity from Nepal to Bangladesh through the Indian grid has opened a brand new chapter in our financial partnership. With this, common transmission of energy is scheduled to happen for 5 months yearly from mid-June to mid-November, aligning with Nepal’s peak power technology interval.

We all know that that is only a small step however it carries symbolic significance because it has the potential to generate new momentum for cooperation within the energy sector each at bilateral and sub-regional ranges. With a view to constructing on this momentum, talks are underway for a three way partnership settlement between our two governments for the event of the 683 MW Sunkoshi III hydropower challenge. Moreover, Bangladesh authorities are negotiating with the GMR Firm of India in finalizing the deal for importing 500 MW of electrical energy from the 900 MW Higher Karnali Hydropower Undertaking.

Given Nepal’s immense hydropower potential and Bangladesh’s rising wants, power cooperation is certainly a ‘dawn business’.  So, it’s crucial that we transfer past this symbolic starting and try to advertise hydropower cooperation because the centerpiece of our bilateral relations.

Tourism and Individuals-to-Individuals Contacts

Cultural ties and people-to-people connections have lengthy been the bedrock of our enduring friendship. These bonds are rooted in historical past and shared values; and consolidated by steady trade over the centuries.

Nice Bengali students and philosophers akin to Atish Dipankar and Vanaratna travelled to Nepal centuries in the past to unfold the teachings of Buddhism. It was in 1908 when famend Bengali scholar Haraprasad Shastri found a palm-leaf manuscript of the the Charyapada — a group of historical Bangla poems — within the Royal Courtroom of Nepal.

Our shared linguistic heritage is additional evident in the truth that Sanskrit serves because the linguistic origin of each Nepali and Bangla languages. We rejoice widespread festivals, take pleasure in comparable cuisines, and uphold many shared customs and traditions.

A vibrant instance of our rising people-to-people connections is the custom of Nepali college students pursuing larger training in Bangladesh, particularly within the subject of medical research.  At the moment, about 2700 Nepali college students are learning in varied universities throughout Bangladesh. Likewise, Nepal continues to be a well-liked vacation spot for Bangladeshi vacationers, with near 50,000 guests recorded in 2024.

These grassroot-level connections and exchanges have performed an important position in deepening our heat and pleasant ties. We aspire to see these interactions develop in each instructions. To this finish, we should facilitate simpler journey, increase scholarship alternatives for our college students, and promote additional cultural linkages, making certain that our friendship will not be solely between governments, but additionally deeply rooted in robust people-to-people connections.

Want for Renewed Outlook

It’s certainly a matter of satisfaction that Nepal Financial Discussion board (NEF) and the Centre for Coverage Dialogue (CPD) have come collectively to undertake a research on ‘Nepal-Bangladesh Relations- A Renewed Outlook’. I commend each establishments for his or her dedication to fostering dialogue, producing information, and strengthening bilateral cooperation. I’m assured that the research will delve into all vital points of our partnership, providing contemporary insights and actionable suggestions to reinforce collaboration between our two international locations.

In fact, all of us perceive that that is simpler stated than completed. It’s usually stated that in diplomacy, we predict and speak in ‘poetry’ however act in ‘prose’ as a result of the challenges we face are actual, and at instances, formidable. But, we now stand at a pivotal second to form the way forward for Nepal–Bangladesh relations in a way that’s each formidable and anchored in grounded realities. I hope the analysis staff will rise to the event and do full justice to this chance.

I want them each success of their endeavor.

This text is predicated on Ambassador Bhandari’s remarks on the Dhaka Roundtable on August 3, 2025, entitled “Nepal–Bangladesh Relations: A Renewed Outlook.”





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