Finance Minister AMA Muhith has said Bangladesh steps to strike sub-regional or bilateral agreements as the eight-nation group, Saarc, failed to improve intra-regional trade.
“Yes, SAARC failed, that’s why we have moved for bilateral and sub-regional trade relations, such as with Nepal and Bhutan,” he replied to a question from journalists after a meeting with ADB vice president yesterday.
Asian Development Bank also wants to invest in sub-regional trade improvement projects and has already launched one - “South Asia Sub-Regional Economic Cooperation,” finance minister cited.
Bangladesh has signed cooperation deals in bilateral trade with Nepal and Bhutan – two members of South Asian Association for Regional Cooperation (Saarc).
Under the deals, according to Muhith, the countries have already started using Mongla sea port of Bangladesh.
However, the implementation of transit route agreement with Nepal and Bhutan has faced a delay as India, also a part of the proposed route, is yet to put ink on such a deal.
Finance minister is hopeful that India would sign the deal and said as a new government in the country has just taken office, it might take some time to act on the matter.
India also told Bangladesh that the latter should have not inked the deal with others before making it with India, Muhith said. He thinks slow implementation of Public-Private-Partnership projects to develop regional trade is another reason behind the delay.
“None from private sector comes to invest in the projects under PPP initiative,” he lamented.
Besides, the Kunming initiative, known as BCIM-EC, has also made no progress and still remained just a commitment, Muhith said.
The Bangladesh China India Myanmar Economic Corridor (BCIM-EC) is an initiative conceptualised to achieve significant gains through sub-regional economic cooperation within the BCIM.
The multi-modal corridor will be the first expressway between India and China and will pass through Myanmar and Bangladesh.