Pakistan – Nepal economic relations
Although political relations between Pakistan and Nepal have usually been termed as “friendly and cordial,” the bilateral economic and trade relationship has, in fact, never attained the desired level. During the entire period of the relationship between the two countries, bilateral trade and commerce has not lived up to its promise. Over the years, the scale and scope of Pakistan-Nepal economic engagement has been “unimpressive” with trade and investments never gathering any momentum.
A Trade Agreement between Pakistan and Nepal was signed in 1962. Another agreement, concluded in 1982, facilitated the two sides to accord “Most Favoured Nation” (MFN) status to each other. However, bilateral trade remains insignificant due to geographical limitations of Nepal and India’s refusal of transit land route to Nepal.
The following trade figures of the last few years, as well as those of the recent past, indicate the state of economic and trade relations between Pakistan and Nepal:
(Figures in Million US$)
|Year||Imports from Nepal||Exports to Nepal||Volume||Balance|
On an average bilateral trade has stood at US$ 4.80 million/year.
Major Exports to Nepal
Pakistan exports: sugar (raw), dates, electro-medical instruments and appliances, polyethylene terephthalate, pet bottle, textile floor coverings of nylon or polyamides, spices, boards, sheets, panels faced or reinforced with paperboard only, roofing sheets, roofing tiles, chewing gum, plants and parts of plants (including seeds and fruits) of a kind used primarily in perfume, dried apricots, dental fittings, seeds of caraway, anise seeds, wooden furniture, sports equipment etc.
Major Imports from Nepal
The major Nepalese commodities that are imported by Pakistan are: woolen shawls, scarves, mufflers, mantillas, veils and the like, artificial parts of body, cream and like preparations, tanned or crust hides and skins of goats kids, coloring matter of vegetable or animal origin, plants and part of plants (including seeds and fruits), paintings etc.
It is not difficult to trace the factors that help explain the reasons behind insignificant economic activity between the two countries. Some of them are enumerated below: