Nepal Pakistan Relations


 

Establishment of diplomatic relations:

Diplomatic relations between Nepal and Pakistan were established on 20 March 1960. After the establishment of diplomatic relations, the bonds of friendship and cordiality between these two countries, propelled by understanding and cooperation, have strengthened. The state of bilateral relations at present is based on goodwill, mutual cooperation and friendship. Nepal established a residential Nepalese Embassy in Pakistan in 1962 and Honourary Nepalese Consulate General in Karachi in 1975.

 

Bilateral Relations:
Nepal and Pakistan have established close relations based on cooperation and mutual understanding over the years, demonstrated goodwill to each other and are desirous of furthering the level of friendly ties to achieve substantial economic benefits. Both Governments share similar views on many issues of common interests and work closely at various international and regional forums such as the UN, NAM, and SAARC.

As founding members of the South Asian Association for Regional Cooperation (SAARC), both Nepal and Pakistan have worked together to make SAARC a viable regional association. Both remain committed to improving the quality of life of the peoples of South Asia, promoting peace and stability in the region, accelerating the pace of economic growth and strengthening collective self-reliance under the banner of SAARC. 

Nepal and Pakistan have also exchanged cooperation in international forums. It has become a longstanding and regular feature to support each other’s candidates in UN and other international bodies. Such understanding and cooperation have helped in further strengthening bilateral relations between the two friendly countries. 

Politically, Nepal and Pakistan have remained good friends over the decades. Pakistan has extended its support for the democratic process in Nepal, after the successful People’s Movement-II. Pakistan welcomed the restoration of Nepal’s parliament following the popular movement and hoped that the breakthrough would usher in an era of durable peace and prosperity in Nepal. Pakistan has been reiterating its support for Nepal’s sovereignty, territorial integrity and peaceful development

 

Exchange of Visits:
Periodic exchange of visits at various levels has tremendously contributed to consolidating the already happily subsisting ties between Nepal and Pakistan. With the formal establishment of diplomatic ties, exchange of  visits at various levels have taken place between the two countries.

 

Economic Relations

Joint Economic Commission
Nepal and Pakistan economic relations are significantly increasing in the recent years. Along with the SAFTA implementation, the volume of trade and other economic cooperation is expected to rise to a greater extent. In an effort to further strengthened the economic ties between the two countries Nepal-Pakistan Joint Economic Commission (JEC) was set up at the level of Finance Ministers in 1983. Sixth meeting, which is the latest one, of the Joint Economic Commission was held in Islamabad on 19-20 August 2013. The Meeting pledged to further increase bilateral relations in number of fields including trade, commerce, banking, agriculture, energy, health, education, information technology, postal services and civil aviation. The seventh meeting of this Commission will be held in Nepal.
Similarly, a Bilateral Consultation Mechanism exists between the two countries at Foreign Secretary level. The fourth round meeting of this mechanism is proposed to be held in Islamabad on the first half of 2013.

Trade Relations
Nepal and Pakistan signed a Trade Agreement on October 19, 1962 in order to boost up the bilateral trade. The agreement was replaced by another trade agreement on July 28, 1982.

Nepal and Pakistan both being agricultural countries, their exports are more or less similar. Nepal’s export to Pakistan is limited to black tea, woolen shawls, leather, hide and skin, cameras, spectacle lenses, plants (herbal medicines), lentil and cardamom. Nepal’s import from Pakistan include fined leather products, textiles, machinery and parts, shoes and sandal, spices, poppy seed, medicine and medical equipment, garment label, dried fruits, plastic, lab equipment,  accumulators, carding machines and appliances etc.
There are greater potentials for Nepal to promote its export of tea, large cardamom, hide and skin, pashmina-products, agro-products, medicinal herbs to Pakistan. Similarly, Pakistan’s cotton, cotton-yarn, textiles, synthetic yarn, leather garments, surgical instruments, cutleries, ceramic products, mangos and other seasonal fruits have better scope for exports to Nepal. Recently, Pakistani businessmen have shown interest in setting-up joint venture industries in Nepal.

The Federation of Nepalese Chambers of Commerce and Industry and the Federation of Pakistan Chambers of Commerce and Industry have established FNCCI-FPCCI Joint Business Council. Its meetings have provided good opportunities for the business communities of the two countries to meet and discuss business opportunities in each other’s countries.  Similarly, the Confederation of Nepalese Industries (CNI) has signed memorandum of Understanding with the Chambers of Commerce and Industries in Karachi, Lahore and Islamabad to enhance trade and Commerce between the two countries.
The trade figure for the past four years between Nepal and Pakistan has been as follows:

 

Value in Rs. (‘000)

Fiscal Year

Nepal’s Export to Pakistan

Import from Pakistan

Trade balance

2009 63,056 277,169  -214,112
2010 110,869 299,231  -188,362
2011 197,018 305,849  -108,831
2012 176,399 245,328  – 68,929
2013 124,442 412,132  -287,690

Source: – Trade and Export Promotion Centre, GON, 2011/12

The sixth Meeting to Joint Economic Commission reiterated to increase the volume of trade between the two countries which is far lower in comparison to the existing close bilateral relation. Nepal exports pashmina products, tea, lentils, large cardamom, ginger, spices, paper products, etc. to Pakistan and imports comprise leather products, garments, quality rice, chemicals, dry fruits, surgical instruments, sports goods, light engineering and electronic goods, etc. from Pakistan.

 

Tourism

The tourism potentials between Nepal and Pakistan remain under-explored under-utilized. The number of Pakistani people visiting Nepal is to the tune of four thousand a year. The visitors are mainly officials and a few businessmen and tourists. Nepal and Pakistan have concluded a Tourism Cooperation Agreement on 17 February 2009. 

Tourist Arrival to Nepal from Pakistan

By Air

S/N

Year

Tourist Arrival

1 2008 3,242
2 2009 3,913
3 2010 4,342
4 2011 4,889
5 2012 4,867
6 2013 4,370
7 2014 2,692

 Source: Nepal Tourism Board, GoN, 2010/11

Educational, Cultural and Agricultural Cooperation:
o      Pakistan has been providing 15 scholarships annually to Nepalese students under Pakistan Technical Assistance Programme (PTAP) in medicine, dentistry, pharmacy and engineering. Besides, some Nepalese students have been studying in the areas of medicine, engineering, .humanities and business administration on self-finance basis. Pakistan has also been providing professional training to Nepalese Diplomats, short-term and long-term trainings to Nepal Army officers.  

o      Nepal and Pakistan signed a cultural agreement on May 25, 1970 which aims at promoting cultural relations, establishing inter-universities relations and cooperation between Radio and Television agencies of the two countries.