Nepal’s Prime Minister KP Sharma Oli is preparing for a significant diplomatic engagement in Thailand next month, where he will attend the sixth summit of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) from 2 to 4 April. Beyond the regional summit, Oli is expected to undertake a bilateral visit to Bangkok, during which a series of agreements between Nepal and Thailand—spanning government and private sectors—are anticipated to be signed. This dual focus on regional and bilateral cooperation underscores a broader ambition to strengthen ties between South and Southeast Asia, with implications for trade, agriculture, and cultural exchange.
The Bimstec summit, originally slated for September last year but delayed due to a government transition in Thailand, offers a critical platform for Nepal to engage with leaders from the seven-member grouping, which includes Bangladesh, Bhutan, India, Myanmar, Sri Lanka, and Thailand. With a combined population of over 1.7 billion and a GDP of $4.7 trillion, the Bimstec region represents a substantial economic bloc, and the upcoming summit in Bangkok is poised to set a transformative agenda through initiatives like the Bimstec Bangkok Vision 2030 and a potential free trade agreement (FTA).
Strengthening Nepal-Thailand Relations
While the Bimstec summit will address regional priorities, Oli’s bilateral visit to Thailand holds particular significance for Nepal. Senior officials from Nepal’s foreign ministry, speaking on condition of anonymity due to ongoing consultations, have indicated that agreements are being prepared in areas such as tourism, culture, and agricultural collaboration. Specific focus is being placed on technical cooperation in agriculture, covering soil testing, seed treatment, plantation, harvesting, marketing, and the development of agricultural value chains. 
“Thailand has shown exemplary progress in agricultural modernisation, which could benefit us as well” said a foreign ministry official. Nepal also seeks to explore partnerships in clean energy and hydrogen technology, alongside fostering academic ties through student exchange programmes between Nepali and Thai universities. Though the exact list of agreements remains under discussion, the intent to deepen economic and cultural links is clear.
In parallel, Nepal’s private sector is gearing up for formal collaboration with Thai counterparts. Industry bodies such as the Federation of Nepali Chamber of Commerce and Industries, the Confederation of Nepali Industries, and the Nepal Chamber of Commerce are expected to sign memoranda of understanding (MoUs) with Thai business organisations. These agreements aim to bolster trade and investment, leveraging Thailand’s expertise in sectors where Nepal seeks growth.
The bilateral engagements, including delegation-level talks, are likely to be condensed into a single day during or after the Bimstec summit, according to officials involved in the preparations. Nepal has formally proposed the bilateral visit, and confirmation from Thai authorities is awaited, as shared by a senior diplomat at the Nepali Embassy in Bangkok.
Bimstec’s Broader Vision
The Bimstec summit itself carries weighty expectations for regional integration. Thailand, which has chaired the grouping from 2022 to 2024, will hand over leadership at the conclusion of the Bangkok summit. Key deliverables include the Bimstec Bangkok Vision 2030, which aims to position the region as “prosperous, resilient, and open” by the end of the decade, alongside the Bimstec Summit Declaration and a report from the Eminent Persons’ Group (EPG). The EPG’s recommendations focus on reforming and revitalising Bimstec’s institutional framework, following a comprehensive review of existing cooperation across sectors and consultations with stakeholders.
One of the most anticipated outcomes is progress towards a Bimstec free trade agreement (FTA). If finalised, the FTA could significantly enhance intra-regional trade and connectivity among member states. While negotiations are ongoing, the potential economic impact of such an agreement is substantial, given the bloc’s combined economic output and population. For Nepal, a landlocked nation reliant on trade routes through India and access to Southeast Asian markets, the FTA could open new avenues for economic growth, though challenges in aligning national interests with regional goals remain.
Bimstec operates under seven broad pillars of cooperation: Agriculture and Food Security; Connectivity; Environment and Climate Change; People to People Contact; Science, Technology and Innovation; Security; and Trade, Investment and Development. Additionally, it addresses eight sub-sectors, including the Blue Economy, Mountain Economy, Energy, Disaster Management, Fisheries and Livestock, Poverty Alleviation, Health, and Human Resource Development. For Nepal, priorities such as agriculture, connectivity, and energy align closely with national development goals, making active participation in Bimstec a strategic imperative.
Diplomatic Opportunities on the Margins
Beyond the Nepal-Thailand bilateral focus, Oli is expected to hold meetings with other Bimstec leaders on the sidelines of the summit. Nepal has proposed discussions with Indian Prime Minister Narendra Modi, among others, adhering to the tradition of bilateral engagements during such gatherings. These interactions provide an opportunity to address shared concerns, including cross-border connectivity, trade imbalances, and regional security, though specific agendas for these meetings have not yet been disclosed.
Preparatory meetings involving foreign ministers, senior officials, and joint secretaries from Bimstec member states will precede the summit, ensuring that discussions are grounded in detailed policy frameworks. For Nepal, these engagements are a chance to assert its role within the grouping, particularly as it seeks to balance its geopolitical position between larger neighbours like India and emerging partnerships with Southeast Asian nations like Thailand.
Regional Context and Challenges
Bimstec, established in 1997, has often been viewed as a counterweight to other regional organisations like SAARC (South Asian Association for Regional Cooperation), which has faced stagnation due to political tensions, particularly between India and Pakistan. By focusing on technical and economic cooperation, Bimstec aims to sidestep such geopolitical frictions, though it is not immune to challenges. Issues like Myanmar’s ongoing internal conflict and varying levels of economic development among member states complicate efforts to achieve cohesive regional policies.
For Nepal and Thailand, the bilateral agreements under discussion at the summit could serve as a model for practical, results-oriented cooperation within Bimstec. Agriculture, a shared priority, exemplifies this potential. Thailand’s advancements in agricultural technology and market access could provide valuable lessons for Nepal, which continues to grapple with low productivity and rural poverty. If successful, collaboration in this sector might encourage other Bimstec members to pursue similar partnerships, though the scalability of such initiatives remains untested.
Moreover, the emphasis on tourism and cultural exchange aligns with Bimstec’s pillar of People to People Contact. Nepal, with its Himalayan heritage and spiritual landmarks, and Thailand, a global tourism hub, stand to benefit from mutual promotion of travel and cultural understanding. However, logistical hurdles, such as limited direct connectivity between the two nations, may temper short-term gains unless addressed through targeted investments.
Looking Ahead
As the Bimstec summit approaches, the spotlight will be on whether member states can translate ambitious visions into actionable outcomes. For Nepal, the event represents not only a chance to strengthen ties with Thailand but also to position itself as a proactive player in regional affairs. The potential signing of bilateral agreements, if confirmed, could mark a milestone in Nepal-Thailand relations, with ripple effects for trade and development.
Yet, questions linger about the broader impact of Bimstec’s initiatives. Will the Bangkok Vision 2030 provide a clear roadmap for a region marked by diversity and disparity? And can smaller nations like Nepal leverage the platform to address structural challenges without being overshadowed by larger economies? As leaders gather in Bangkok, the answers to these questions will begin to take shape, setting the tone for regional cooperation in the years ahead.
