Resumption of direct flights to improve trade: Nepali envoy

LAHORE: The Ambassador of Nepal to Pakistan Ms Rita Dhital has said that the resumption of direct flights between Nepal and major Pakistani cities like Karachi and Islamabad will serve as a catalyst for strengthening bilateral trade, economic cooperation and tourism exchange between the two friendly nations.

She expressed these views during meeting with LCCI President Mian Abuzar Shad at the Lahore Chamber of Commerce and Industry. LCCI Executive Committee Members Ahsan Shahid, Karamat Ali Awan and Irfan Qureshi were also present on the occasion.

The Ambassador said that direct air connectivity plays a pivotal role in reducing logistical barriers and building people-to-people linkages, which in turn enhance business opportunities and regional understanding. The revival of direct flights between Kathmandu and cities like Karachi and Islamabad will not only make travel easier but will also give a substantial boost to commercial and cultural ties.

She proposed that a high-level trade delegation from Pakistan should visit Nepal to explore the diverse range of trade and investment opportunities available there. Such exchanges will help the business communities of both sides understand each other’s markets and regulatory environments, paving the way for deeper cooperation.

Highlighting the strong cultural affinity between the two nations, Ms. Rita Dhital said that Pakistan and Nepal share rich historical traditions, mutual respect and longstanding friendship dating back to the 1960s.

She said that both countries can benefit immensely from joint ventures in a wide range of sectors, particularly pharmaceuticals, information technology, education, tourism and agriculture.

“There is immense untapped potential for academic linkages and exchange programs between our institutions. Similarly, our pharmaceutical sectors can engage in technology transfer, manufacturing collaborations and product development to address regional health needs,” she added.

The Ambassador said that regional cooperation must be revived with a renewed focus on connectivity and economic integration. Nepal, being a landlocked country deeply understands the importance of robust regional partnerships for sustainable growth.

LCCI President Mian Abuzar Shad, while welcoming the Ambassador, said that Pakistan and Nepal, as members of SAARC, have enjoyed friendly relations since the 1960s. He highlighted LCCI’s consistent stance in promoting regional peace by strengthening trade and economic relations among SAARC member countries.

“Nepal, being a landlocked country situated between China and India, understands the significance of regional trade more than others,” said Mian Abuzar Shad. “Nepal’s import-oriented economy is heavily reliant on its neighbors, with imports valued at $10.4 billion compared to exports of just $1.2 billion in 2023. India and China accounted for nearly 70% and 17% respectively of Nepal’s total imports.”

He stressed that while this dependence leaves limited space for other countries to capture a fair share in Nepal’s trade, Pakistan can still find opportunities by adopting innovative strategies to identify and tap into potential areas of cooperation.

Despite decades of good relations, trade volume between Pakistan and Nepal remained limited to $3.1 million during 2023-24. However, Mian Abuzar Shad pointed out a positive development in the first nine months of 2024-25, with Pakistan’s exports to Nepal reaching $1.9 million and imports at $1.4 million.

“There is still a long way to go, but this positive momentum should be further built upon,” he said. “Nepal imported products such as rice ($207 million), pharmaceuticals ($205 million), coal ($133 million), dried vegetables ($107 million), corn ($105 million), fruits ($100 million) and motorcycles ($87 million) in 2023. Pakistan can supply these products at highly competitive rates, potentially increasing bilateral trade to triple figures.”

He emphasized the importance of establishing strong linkages between business support organizations, particularly chambers of commerce from both countries. “Private-to-private sector contacts must be encouraged to bridge the communication gap and motivate business communities on both sides to actively pursue trade ties,” he added.

President Abuzar Shad further proposed the improvement of banking channels, initiation of direct flights, organization of trade delegations and holding of single-country exhibitions as practical steps to open new avenues for bilateral trade between Pakistan and Nepal.

Copyright Business Recorder, 2025