As of September 2025, Bangladesh and Nepal are strengthening their bilateral ties, focusing on areas such as trade, energy, and regional cooperation.
Trade Relations
The trade volume between Bangladesh and Nepal is currently modest, with Bangladesh exporting goods worth approximately $40 million to Nepal and importing goods valued at around $3.8 million. Both countries are working to enhance these figures by addressing trade barriers and exploring new avenues for economic collaboration.
Energy Cooperation
A significant development in their relationship is the commencement of electricity exports from Nepal to Bangladesh. In November 2024, Nepal began exporting 40 megawatts of hydroelectric power to Bangladesh via India’s power grid. This marks the first-ever power flow between the two nations and is part of a broader initiative to harness Nepal’s growing hydropower capacity.
Regional Cooperation
Both countries are active participants in regional initiatives aimed at promoting economic growth and connectivity. They are members of the South Asia Subregional Economic Cooperation (SASEC) program, which focuses on improving cross-border connectivity and boosting trade among member countries. Additionally, they are engaged in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which seeks to enhance regional cooperation in various sectors.
Cultural and Diplomatic Engagement
Bangladesh and Nepal share deep historical, linguistic, and socio-cultural ties. Leaders from both countries have expressed a commitment to strengthening these bonds through cultural exchanges and diplomatic engagements. For instance, on Nepal’s National Day, Bangladesh’s leaders extended greetings and reaffirmed their dedication to enhancing bilateral relations.
Challenges and Prospects
Despite the positive developments, there are challenges to overcome. The political situation in Nepal has seen recent upheavals, including widespread protests led by Gen Z activists, which have led to significant political changes. While these internal challenges are primarily domestic, they may have indirect implications for Nepal’s international relations.
Looking ahead, both Bangladesh and Nepal are poised to continue their cooperative trajectory. Their shared commitment to economic collaboration and mutual development positions them well to navigate regional dynamics and enhance their partnership in the coming years.
