Bangladesh and Nepal have decided to form a task force to promote bilateral trade and investment between the two countries.
Visiting Nepalese Foreign Minister Pradeep Kumar Gyawali disclosed this on Tuesday while talking to reporters after a bilateral meeting between the two countries held in the state guesthouse Meghna.
The task force will work to explore ways and means to promote trade and investment, he said, adding that the present volume of bilateral trade is very modest and there is an ample scope to enhance it.
"We have discussed all areas of cooperation and it was a very fruitful discussion." Energy, connectivity, climate change and people-to-people movement were the main issues which came up for discussion in the meeting, he mentioned.
He also said Nepal has completed its preparations for the power plant from which Bangladesh will import 500 megawatt (MW) of electricity.
An Indian company is investing in the power plant and Bangladesh has signed a deal with that company to import power. Now it is up to that company to commence the construction work of the plant. It may take 5-6 years to complete, he said.
The Nepalese minister said both sides have requested each other to remove tariff and non-tariff barriers on their exportable products. "Removing these barriers is crucial to enhancing trade."
Mr Pradeep also disclosed that talks are continuing about bilateral agreements on preferential trade and investment protection. "We are hopeful of signing these agreements after completion of negotiations."
Both the countries have reached a consensus to work together to address the challenges of climate change. "Our mountains are being melted and Bangladesh's sea level is rising due to climate change effect. So, we need to work together," he added.
Bangladesh foreign Minister Dr AK Abdul Momen said both sides agreed to remove tariff and non-tariff barriers.
"We have to pay 56 per cent duty on some products and we have requested them to reduce duty. Similarly, they have requested us to reduce duty on some of their exportable."
The minister said Bangladesh has agreed to let Nepal use Syedpur Airport but 'we need to assess the modalities by a technical committee'.
"We have also agreed to facilitate more visit of tourists of the two countries," Dr Momen said.
The issue of water management of trans-boundary rivers also came up in the meeting, he added.
The visiting Nepalese foreign minister also stressed the need for enhancing regional connectivity in the South Asian region in a bid to boost common economic growth.
While delivering a keynote speech at a discussion on 'Bangladesh-Nepal relations: prospect for sub-regional cooperation, he pointed out that enhancing connectivity is crucial to promoting trade and investment.
Bangladesh Institute of International and Strategic Studies organized the discussion.
This is also vital for growth of all the countries in the region which will ultimately lead to regional peace and stability, Mr Pradeep said.
The Nepalese minister lauded Bangladesh's impressive economic growth and said with 6.2 per cent GDP growth, Nepal stands second among the top growth achievers of this region.
He also emphasized on exploring true potential of the regional cooperation to boost growth.
In this connection, he mentioned the initiatives like BBIN and said though Bhutan is yet to endorse the regional motor vehicle agreement, it has given consent to trade and investment cooperation mechanisms.
Mr Pradeep further mentioned that despite having high potential, the volume of bilateral trade between Bangladesh and Nepal is still modest.
In this context, he highlighted the necessity to remove tariff and non-tariff barriers on trade.
He also pointed out that both the countries need to work together on tourism, energy and climate change issues.
Nepal has agreed to provide hydropower to Bangladesh and Bangladesh has permitted an Indian company to supply power from their plant in Nepal.
Addressing the discussion as the chief guest, State Minister for Foreign Affairs M Shahriar Alam termed Nepal a true friend of Bangladesh.
He said Bangladesh has already agreed to provide transhipment facilities to Nepal through Chittagong and Mongla ports.
BIISS Chairman Ambassador Fazlur Rahman chaired the discussion.
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