Bangladesh and Bhutan have expressed keen interest in deepening bilateral cooperation, particularly in renewable energy and trade, to unlock untapped economic potential of the South Asian region.

The topic was discussed during a meeting between commerce minister Khandaker Abdul Muktadir and Bhutanese ambassador to Bangladesh Dasho Karma Hamu Dorji at the Secretariat on Tuesday, according to a ministry press release.

During the meeting, the commerce minister stressed the need to enhance intra-regional trade, noting that despite significant economic potential, South Asia remained one of the least integrated regions globally in terms of trade.

He said that intra-regional trade accounted for only a small fraction of the region’s total trade, underscoring the urgency of strengthening economic ties among neighboring countries.

‘Despite South Asia’s combined GDP standing at around $59 trillion, intra-regional trade accounts for only about 1 per cent — far below its potential. In this context, strengthening trade ties among neighbouring countries has become essential,’ he added.

Highlighting Bangladesh’s commitment to regional connectivity and cooperation, Muktadir proposed exploring joint initiatives in energy sector, particularly renewables.

He suggested establishing joint-venture hydroelectric projects and expanding solar energy cooperation, leveraging Bhutan’s hydropower potential and the two countries’ geographical proximity.

The Bhutanese ambassador welcomed the proposals and expressed her country’s interest in enhancing collaboration in energy and trade.

She noted that Bhutan’s border lies in close proximity to Bangladesh’s Burimari land port, making bilateral trade and connectivity both convenient and cost-effective.

Dorji also highlighted the longstanding people-to-people ties between the two nations, particularly in the education sector, where Bhutanese students pursued medical studies in Bangladesh, fostering mutual trust and cooperation.

Commerce ministry additional secretary (FTA) Ayesha Akter and Bhutan’s minister counsellor (trade) Dawa Tshering were also present at the meeting.

Both sides expressed optimism that enhanced cooperation, particularly in renewable energy and trade, would contribute to sustainable economic growth and regional integration, the release added.