The Bangladesh Nationalist Party (BNP), led by Tarique Rahman (son of former Prime Minister Khaleda Zia), achieved a landslide victory in Bangladesh's parliamentary elections held on February 12, 2026. This was the first national election since the 2024 political uprising that ousted longtime Prime Minister Sheikh Hasina and her Awami League government in August 2024.
Bangladesh has extended invitations to the heads of governments from various countries, including Nepal (Foreign Minister Bala Nanda Sharma) for the swearing-in – scheduled for February 17 – of the new cabinet, led by BNP chief Rahman. The list of invited nations includes SAARC and BIMSTEC counterparts like India, Pakistan, Sri Lanka, the Maldives, and Bhutan.
Bangladesh First
In his first post-election press conference and statements, Rahman emphasized a "Bangladesh First" foreign policy, guided by national interest, and mutual respect.
Rahman’s foreign policy outline might be a ‘paradigm shift’ moment for Dhaka as it aims to balance ties with India, China, and Pakistan in the backdrop of their respective intra-regional complex dynamics. Under Rahman’s leadership, Bangladesh is aiming to revive SAARC and explore BRI (Belt and Road Initiative) that could ‘prove helpful and beneficial’.
In a recent interview, Rahman’s foreign policy adviser Humayun Kabir pointed out Bangladesh will maintain a balanced need-based trade and development ties with regional and external powers like India, China, and the US. Further, Kabir indicated Dhaka’s willingness to work towards a ‘strong regional framework’ while reactivating SAARC and BIMSTEC, which he described as a "bridge between South Asia and Southeast Asia. However, there were no explicit public statements addressing BBIN’s full operationalization.
To the advantage of its neighbors Bangladesh’s pronounced emphasis on developing a strong regional framework will open opportunities for enhanced engagement in multiple sub-regional initiatives like BIMSTEC and BBIN, aligned with Rahman's emphasis on ‘economy and governance first’ model prioritizing sectors such as energy, trade, and finance. But that would require Dhaka to isolate bilateral disputes from sub regional efforts.
BIMSTEC Secretary-General Indra Mani Pandey in his congratulatory note to Rahman’s "decisive electoral victory" highlighted Bangladesh's essential role in the forum and potential for enhanced collaboration in trade, connectivity, energy, and exchanges.
Nepal-Bangladesh Multifaceted Partnership
Bangladesh’s election sets the tone for Nepal’s impending general elections, both preceded by democratic protests and demand for a new government. Nepal comparatively has been more upfront and quicker in holding the general elections, while it almost took two years for Bangladesh to elect the new leadership.
Though, there are many similarities in the protest, popularly known as Gen Z protest’, in both the countries, there are more dissimilarities too. However, through Bangladesh’s election, though late, and Nepal’s scheduled election for March 5, will give both the nations new governments, there are ample areas of cooperations too in future.
Bangladesh and Nepal are both scheduled to graduate from the Least Developed Country (LDC) category in November 2026, marking a significant milestone in their development journeys. Though, Nepal met its LDC graduation criterion in 2015, it had to defer due to mega earthquake, and after repeated defer due to various reasons, the country is now graduating in November 2026. The graduation means both Nepal and Bangladesh will lose special trade preferences, such as duty-free and quota-free market access, grants, and other international support measures provided exclusively to the LDCs.
Both countries are actively implementing policies to ensure a smooth transition and sustainable development following their graduation from the LDC category. Bangladesh has a more diversified, industry-led economy, while Nepal remains structurally reliant on both agriculture and foreign remittance inflows. Under such circumstances both countries can come together in knowledge and expertise sharing to leverage each other’s skills and economic strength for shared growth and development objectives as geographic neighbors.
In Nepal-Bangladesh bilateral ties, energy remains yet another key sector of synergy. On November 15, 2024, Nepal began exporting its first 40 MW of hydroelectricity to Bangladesh via the Indian power grid. The trilateral power agreement made the energy flow possible from Dhalkebar (Nepal) to Muzaffarpur (India), and then to Bheramara (Bangladesh) using 400kV transmission lines. The tripartite power agreement could be extended to other South Asian nations in future. With invitations to regional leaders (including from Nepal and India) for the oath ceremony, there's scope for high-level discussions on scaling broader regional energy ties, potentially including other nations.
Rahman's emphasis on sub-regionalism can be an added advantage to its existing bilateral framework with Bhutan strengthening cooperation in hydropower exports from Bhutan to Bangladesh (via existing or enhanced corridors) and joint efforts on climate and tourism.
Bangladesh and Bhutan signed a Preferential Trade Agreement (PTA) in 2020 (implemented in July 2022), which has significantly boosted bilateral trade. Bangladesh provides landlocked Bhutan access to its Mongla, Payra and Chattogram sea ports, facilitating third-country trade.
Nepal-Bangladesh bilateral trade partnership can significantly improve under Rahman. The quantity of trade remains modest but there's room for growth also in areas like pharmaceuticals, textiles, and people-to-people exchange. In January 2026, the 8th Commerce Secretary-Level Meeting in Dhaka accelerated negotiations on a bilateral Preferential Trade Agreement (PTA). Both sides agreed to finalize the draft, rules of origin, and product lists within three months, aiming to reduce tariffs, para-tariffs, and non-tariff barriers.
Connectivity through energy grids, trade corridors, and transport networks is another key sector of Nepal–Bangladesh bilateral ties. Because they do not share a land border, this connectivity is inherently trilateral, relying on the Siliguri Corridor or "Chicken's Neck" in Indian territory.
Nepal’s Prime Minister Sushila Karki in her congratulatory note to newly elected BNP leader Rahman, expressed confidence in cultivating stronger bilateral ties. As per the existing trajectory of Nepal-Bangladesh bilateral ties, opportunities could emerge in sub-regional cooperation (e.g., energy corridors linking Nepal-Bhutan-Bangladesh-India, BIMSTEC) and enhanced economic partnerships, especially as both nations navigate post-LDC challenges.
Rahman’s Push for South Asian Integration
Bangladesh’s other significant counterparts in the region like India, Sri Lanka, and Maldives are hopeful of renewed growth driven ties.
Indian Prime Minister Narendra Modi was among the first leaders to congratulate Rahman, affirming India's support for a "democratic, progressive, and inclusive Bangladesh". In his congratulatory message PM Modi stressed on ‘strengthening multifaceted relations and common development goals’.
In a media interview Rahman’s foreign policy adviser Humayun Kabir has indicated a reset in ties with India following the ouster of Sheikh Hasina government.
Similarly South Asian Counterparts Sri Lanka and Maldives were also among the first nations to officially recognize the results and congratulate the new leadership expressing its confidence in the ‘scope and strength’ of the bilateral partnerships.
Since early 2024, Bangladesh has begun using the Maldives as a strategic sea-to-air transshipment hub to export textiles to Europe, saving up to $1 per kg in shipping costs. Both nations are finalizing a Memorandum of Understanding (MoU) for a direct shipping link to enhance bilateral trade and reduce logistics costs.
Beyond its bilateral ties, Bangladesh, as one of the fastest growing economies in South Asia, can focus on pragmatic collaboration with its key partners of BBIN and BIMSTEC in areas like garment/textile exports, pharmaceuticals, tea imports, and maritime connectivity through the Bay of Bengal. The region being a hub of ports and hydropower production has the potential to offer Bangladesh the opportunity to nurture enhanced multilateral partnerships under the new leadership. Efforts in boosting tourism, preserving cultural ties, and people-to-people contact draws little attention but carry high earning and good will benefits in ties.
Rahman's idea on need based foreign policy focused on trade and development signals to prioritize regional trade and diplomacy. Further, his leadership might open opportunities for stronger South Asian economic ties while enabling small nation states to amplify their voice collectively in regional and subregional platforms.
The views expressed above belong to the author(s).