NEPAL-BANGLADESH RELATIONS : RETROSPECT AND PROSPECTS

This article reviews the evolution of Nepal–Bangladesh relations since the 1970s, focusing on the interplay of geography, trade logistics, and political economy. It shows how the absence of a direct land border and dependence on Indian transit shaped both expectations and constraints, while shared development interests created repeated openings for cooperation. The study evaluates bilateral trade composition, the role of special economic windows, and efforts to streamline documentation and standards. Particular attention is given to hydropower: Nepal’s surplus potential and Bangladesh’s demand for clean baseload power offer a structurally complementary fit if bankable cross-border transmission and purchase agreements can be secured. The paper also surveys education, tourism, and labor mobility, arguing that people-centric initiatives can reinforce strategic trust. Looking ahead, it identifies a prospectus built around power trade, dry-port connectivity, multimodal corridors to Chattogram/Mongla, and collaboration in climate adaptation and mountain–delta research.

The body opens with a political-diplomatic timeline highlighting key milestones—establishment of ties, transit understandings, and joint committee mechanisms. Section One analyzes bilateral trade data and non-tariff barriers, showing how limited product diversity, certification delays, and seasonal transport constraints suppress volumes. Section Two examines transit and connectivity: inland container depots, potential rail links to Bangladeshi ports, and the economics of time-to-market for Nepali exports. Section Three details energy cooperation, modeling scenarios for 400 kV cross-border interconnections, wheeling arrangements, and risk-sharing frameworks that make long-tenor power purchase agreements bankable. Section Four evaluates soft-power levers—scholarships, medical travel, and cultural festivals—that deepen societal familiarity and reduce transaction costs for business. Section Five proposes a ten-point action plan covering mutual standards recognition, green customs lanes for perishable goods, academic exchanges on glacial hydrology, and private-sector roundtables. The conclusion argues that small, reliable wins in logistics and power trade will compound into a resilient partnership aligned with each country’s development priorities.