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The bilateral relations between the Federal Democratic Republic of Nepal and the Islamic Republic of Pakistan were fully established between 1962 and 1963.[1] Both nations have since sought to expand trade, strategic and military cooperation.
[edit] Background
Nepal established diplomatic relations with India after the latter's independence in 1947, but did not do so with Pakistan. In 1950, Nepal signed a Treaty of Peace and Friendship with India, creating an extensive relationship of economic, strategic and defence cooperation. Nepal thus remained aloof from Pakistan, which was at conflict with India.[2][3][4] However, Nepal's resentment of Indian influence perceived to be excessive prompted the Nepalese government to develop relations with the People's Republic of China and Pakistan.[5][4][6]
[edit] Development of bilateral relations
Nepal and Pakistan signed a protocol for establishing diplomatic relations in 1962 and exchanged ambassadors and set up embassies in 1963, when Ayub Khan, the President of Pakistan made a special visit to Nepal.[1] Both nations also signed agreements to reciprocate the "Most Favored Nation" status of importance for developing trade and cooperation.[1] In 1963, Pakistan agreed to provide Nepal with free trade access and transport facilities through the port of Chittagong in East Pakistan (now Bangladesh) and established an air link. This arrangement reduced Nepal's dependence on India for trading privileges.[1] Although Nepal officially maintained neutrality during the Indo-Pakistani War of 1971, it was one of the first to recognise the independence of Bangladesh, which had been the eastern wing of Pakistan, after the surrender of Pakistani forces to India.[1]
In recent years, both countries began developing military coooperation, with Nepal importing arms from Pakistan.[7] Condemned and isolated from India, Great Britain and the United States between 2004 and 2006 for repressing democracy, the Nepalese monarchy developed military cooperation with China and Pakistan, who offered extensive military support, arms and military equipment to Nepal for the monarchy to stay in power and fight the Maoist insurgency.[8][7]
[edit] Bilateral trade
Despite an extensive 1982 trade agreement, the volume of bilateral trade remains comparatively small at USD 4.8 million.[9] Pakistan's total exports to Nepal are worth USD 1.631 million while Nepal's exports to Pakistan tally USD 3.166 million.[9] Both countries have recently stepped up efforts to promote bilateral trade, especially in textiles, oilseeds, extraction of oil and tourism; Pakistan also offered a USD 5 million line of credit to Nepal.[10][9][8] Nepal and Pakistan are signatories to the South Asia Free Trade Agreement (SAFTA) and members of the South Asian Economic Union.
[edit] References
