The Governments of Bangladesh and Nepal are negotiating a Preferential Trade Agreement (PTA) to reduce tariff and non-tariff barriers and address the widening trade deficit between the two countries. At a roundtable discussion in Dhaka, Bangladesh, organized by the Centre for Policy Dialogue (CPD), Mr. Ghanshyam Bhandari, Nepal’s Ambassador to Bangladesh highlighted the underexplored potential for stronger economic cooperation. He noted that discussions on product lists, tariffs, and trade facilitation measures will be advanced in the upcoming commerce secretary-level meeting. Ambassador Bhandari also pointed to emerging areas of cooperation, with Bangladeshi companies in food processing, pharmaceuticals, and IT already present in Nepal, alongside an expanding partnership in energy trade. 

Energy cooperation is gaining traction between Bangladesh and Nepal. Bangladesh  began importing 40 megawatts of electricity from Nepal in 2025, and envisions increasing its imports to 9,000 MW by 2040. 

Experts at the CPD discussion emphasized that both countries face urgent economic shifts as they prepare to graduate from Least Developed Country (LDC) status by 2026. The CPD roundtable stressed the importance of diversifying exports and strengthening regional connectivity, and noted that cooperation with India will also be crucial to facilitate large-scale energy and trade transit between Bangladesh and Nepal.  

Related links

Discussion held on enhancing Nepal-Bangladesh economic partnership   

Bangladesh's trade with Bhutan, Nepal marginal   

Bangladesh, Nepal Negotiate Draft Preferential Trade Agreement