BANGLADESH-BHUTAN RELATIONS: CHALLENGES AND PROSPECTS

This article surveys the evolution of Bangladesh–Bhutan relations and evaluates opportunities available to two small South Asian states positioned on different sides of the Himalaya. It outlines the diplomatic milestones since recognition in the 1970s, the emergence of sub-regionalism under BIMSTEC and BBIN, and how connectivity has become the organizing principle of the relationship. Particular attention is paid to trade facilitation through land customs stations, the use of Indian transit, and standard-setting for phytosanitary, trucking and digital documentation. The study examines the promise of cross-border electricity trade anchored in Bhutan’s hydropower and Bangladesh’s demand growth, while highlighting financing, pricing and grid synchronisation hurdles. It also considers tourism, education ties and cooperation in disaster management. The article argues that pragmatic issue-based cooperation, clear trilateral arrangements with India and incremental rule harmonisation can convert geographic constraints into shared prosperity.

The body begins by recounting diplomatic recognition, the opening of resident missions and the gradual expansion of technical cooperation. Section One reviews merchandise trade patterns—stones, chemicals and horticulture from Bhutan; textiles, pharmaceuticals and processed foods from Bangladesh—mapping tariff lines that could benefit from mutual concessions and simplified rules of origin. Section Two analyses transit dependence through Indian territory, describing corridor options, required road and rail upgrades, border management systems, and the role of multimodal logistics. Section Three evaluates energy cooperation: it details Bhutan’s hydropower pipeline, outlines bankability concerns, and explains how regional power trade guidelines, wheeling charges and risk-sharing affect feasibility for Bangladeshi utilities. Section Four addresses soft connectivity—standards, customs automation, mutual recognition and e-invoicing—arguing these can deliver quick wins. Section Five highlights people-to-people links in tourism and higher education, emphasising visa facilitation and joint marketing. The conclusion proposes a phased agenda: pilot trade lanes with green channels, a trilateral power purchase framework, and a connectivity compact that links infrastructure with service-level agreements and environmental safeguards to ensure durable gains for both partners.