US Tariff Chaos: Asia Stumbles, Pakistan Gains

Stock markets across Asia fell on Monday after U.S. President Donald Trump sent tariff letters to 14 countries, slapping a 10% surcharge on nations “aligning with BRICS.” However, Pakistan outperformed, amid optimism over a possible trade deal with Washington.

In Japan, the Nikkei 225 slipped 0.56%, finishing at 39,587.68, while the Topix index also declined by 0.57% to close at 2,811.72. Hong Kong’s Hang Seng index dropped 0.61%, and mainland China’s CSI 300 fell 0.43% to close at 3,965.17. The Indian rupee fell to a low of 86.0275 against the U.S. dollar before recovering slightly to close at 85.85, down 0.5% on the day—its weakest closing since mid-June, when markets were rattled by military tensions between Israel and Iran

The KSE-100 index surged 1,421 points, or 1.08%, closing at a record high of 133,370.15 — the best-performing market in Asia on Monday.

Analysts believe the market gain is due to reports that Pakistan and the United States have reached a trade and tariff agreement ahead of the July 9 deadline. A formal announcement is expected after the U.S. wraps up talks with other countries.
Last month, President Donald Trump hosted Pakistani Field Marshal Asim Munir to the White House ahead of strikes on Iran’s nuclear facilities. The meeting between Pakistan’s army chief and the U.S. president took place on June 19, during which the U.S. reportedly asked Pakistan for airbases to facilitate attacks on Iran.

Pakistan military’s media wing said both sides reaffirmed counter-terrorism cooperation and discussed expanding ties in trade, minerals, energy, AI, cryptocurrency, and emerging technologies. President Trump showed interest in a long-term, mutually beneficial trade partnership based on shared strategic goals. Pakistan’s exports to the United States, according to Office of United States Trade Representative, are around $5.1 billion, while imports from the U.S. are approximately $2.1 billion. The total volume of goods trade between the two countries stands at about $7.3 billion. Pakistan exports nearly $3 billion more to the United States than it imports from it.

Tariff Letters Sent to 14 Countries

On Friday, Trump’s administration sent tariff letters to 14 countries.

	Country	Tariff	Country	Tariff 2
	Bangladesh	35%	Bosnia & Herzegovina	30%
	Cambodia	36%	Japan	25%
	Indonesia	32%	Laos	40%
	Kazakhstan	25%	Malaysia	25%
	Myanmar	40%	Serbia	35%
	South Korea	25%	South Africa	30%
	Tunisia	25%	Thailand	36%

The US also imposed an additional 10% surcharge on any nation “aligning with the anti-American policies of BRICS.”

BRICS stands for Brazil, Russia, India, China, and South Africa. It was founded in 2001 as a forum for emerging economies and less developed countries to cooperate on trade, security, and diplomacy.

Brazil, Russia, India, and China were original members, while South Africa, Saudi Arabia, Egypt, Iran, Ethiopia, the United Arab Emirates, and Indonesia joined later, bringing the total to 11 countries. By Atif Khan
Atif Khan is an Islamabad based journalist.

 

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Tariffs War: Donald Trump sends letters to 14 countries, mainly in Asia

Donald Trump has sent letters to 14 countries, mainly in Asia, informing them that higher import tariffs will kick in on August 1 unless they reach a deal with the United States.

It is the second time the US president has set a deadline after he postponed tariffs on almost all countries in April for 90 days.

Countries that have large trade imbalances with the United States have been key targets, including Japan ($68.5 billion surplus in 2024), South Korea ($66 billion), Thailand ($45.6 billion) and Indonesia ($17.9 billion).

Here is what Trump's letters mean for these countries:

South Korea: Optimistic for a deal

South Korea, already burdened by levies on steel and automobiles, is facing a 25 percent tariff hike on its remaining exports to the United States, but is cautiously optimistic for a deal.

Washington "hoped the two sides could reach an agreement before then (August 1)", South Korea's national security adviser Wi Sung-lac said after meeting US Secretary of State Marco Rubio on Monday.

South Korea, one of the world's biggest shipbuilders, agreed to "coordinate closely" with the United States to achieve "tangible and mutually beneficial outcomes", he said.

Japan: Elections, rice and autos

A close US ally and its biggest investor, Japan has to deal with a 25 percent levy on its key auto industry.

It is facing similar tolls on other goods, up from 24 percent announced in April, but better than the "30 percent, 35 percent or whatever the number is that we determine" threatened by Trump last week.

Prime Minister Shigeru Ishiba told a cabinet meeting Tuesday that the tariff set out in the letter was "genuinely regrettable", local media reported.

The reason for not making a deal, he said, was "the Japanese government has avoided making easy compromises, firmly demanding what should be demanded, protecting what should be protected, and has conducted rigorous negotiations".

Trump has criticised Japan for not opening its market enough to US rice and vehicles.

The Japanese government says it is defending local farmers' interests and has taken a hardline approach to talks.

"We have no intention of negotiating at the expense of agriculture," Japan's tariffs envoy Ryosei Akazawa said Tuesday.

Indonesia: 'Very optimistic'

Indonesia, facing 32 percent tariffs, said Tuesday it was optimistic of striking a deal as chief economic minister Airlangga Hartarto headed to the United States to resume talks.

With several weeks breathing room, Jakarta was "very optimistic about the negotiation", presidential spokesman Hasan Nasbi said.

Indonesia plans to increase its agricultural and energy imports from the United States to finalise an agreement, Airlangga recently told AFP.

Indonesia already announced Monday it had agreed to import at least one million tons of US wheat annually for the next five years, worth $1.25 billion.

Cambodia, Myanmar, Laos: China allies face heavy levies

Trump announced 49 percent tariffs on Cambodia in April, one of the highest levies in his blitz. Monday's letter to the country that hosts many Chinese owned factories, reduces this rate to 36 percent.

Prime Minister Hun Manet assured the White House of Cambodia's "good faith", with reduced tariffs on 19 categories of US products.

Myanmar and Laos, which face 40 percent tolls, rely on Chinese investments, while their supply chains are closely intertwined with Asia's largest economy.

Washington has repeatedly highlighted the risk of Chinese products passing through Southeast Asian countries to avoid US tariffs targeting China.

Thailand, Malaysia: Making pledges

Thailand was told it faces 36 percent levies. Bangkok is offering more access to its market for US agricultural and industrial products, increasing its energy purchases, and boosting orders for Boeing airplanes.

Acting prime minister Phumtham Wechayachai told reporters Tuesday he wanted a "better deal", adding that "the most important thing is that we maintain good relations with the US".

Bangkok aims to reduce its US trade surplus by 70 percent within five years, achieving balance in seven to eight years, Finance Minister Pichai Chunhavajira recently told Bloomberg News.

Thai Airways could commit to purchasing up to 80 Boeing planes in the coming years, according to Bloomberg.

Malaysia faces a 25 percent tariff and the trade ministry said Tuesday it would continue negotiations to reach a "balanced, mutually beneficial, and comprehensive trade agreement".

Bangladesh: Textiles at risk 

The world's second-largest textile manufacturer is facing a 35 percent tariff on its goods but was hoping to sign an agreement by early July.

Textile and garment production accounts for about 80 percent of Bangladesh's exports, and supplies US brands including Vans, Timberland and The North Face.

Dhaka has proposed to buy Boeing planes and boost imports of US wheat, cotton and oil.

"We have finalised the terms," Commerce Ministry Secretary Mahbubur Rahman told AFP, adding that negotiators were set to meet Tuesday.

Other targeted countries 

Kazakhstan (25 percent), South Africa (30 percent), Tunisia (25 percent), Serbia (35 percent), and Bosnia (30 percent) are among the other recipients of the letters made public by Trump on Monday.

- AFP

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Can India Suspend Pakistan’s Lifeline—The Indus Waters Treaty?

Islamabad: India’s suspension of the Indus Waters Treaty has triggered concern in Pakistan, which relies on rivers flowing from India to sustain its agriculture and economy. Blaming Pakistan based groups for Pahalgam attack in Indian-administered Kashmir that left many civilians dead, India suspended the treaty this year.

However, many analysts believe that the decision is based on Indian ambition to expand its water infrastructure. Over the past few years, India has accelerated the construction of run-of-river hydropower projects such as Kishanganga and Ratle and is planning large reservoirs and canal systems on western rivers which flow into Pakistan. 

What Is the Indus Waters Treaty?

Signed on September 19, 1960, the Indus Waters Treaty (IWT) was brokered by the World Bank and signed by Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan in Karachi. It came into effect on April 1, 1960.

The treaty allocates Eastern Rivers (Ravi, Beas, Sutlej) to India, while Western Rivers (Indus, Jhelum, Chenab) to Pakistan. Under the treaty, India can use limited waters from the western rivers for domestic needs, irrigation, and hydroelectric projects, but under strict technical conditions.

Despite multiple wars and decades of tension, the treaty has remained largely intact for over sixty years.

Can India Legally Suspend or Withdraw from the Treaty?

No, not unilaterally. The treaty has no exit clause, and can only be altered or terminated by mutual agreement between India and Pakistan. Under international law, namely the Vienna Convention on the Law of Treaties, a country can attempt to withdraw if there is a material breach or a fundamental change in circumstances, but even then, it must give 12 months notice and be face legal scrutiny. Analysts believe India’s action could be best described as a political suspension, not a legally binding withdrawal.

What Did The Hague Court Say?

On June 27, 2025, the Court of Arbitration constituted under the Indus Waters Treaty unanimously ruled that the treaty remains in force and that neither party can unilaterally block the dispute resolution process. It further said that India’s unilateral decision to place the treaty “in abeyance” has no effect on the ongoing legal proceedings initiated by Pakistan.

What Are the Implications for Pakistan?

Pakistan depends on the Indus Basin for most of its irrigation and food production. Suspension of data sharing could affect flood forecasts and seasonal crop planning. Past maintenance activities on Indian dams have already led to 60–90% drops in river flows during dry months. Islamabad sees any move to block or reduce water as a serious threat that could heighten tensions.

The treaty was meant to keep water out of politics. India's move challenges that principle.

By Atif Khan. 

Atif Khan is an Islamabad based journalist.

Title Image: Ayub Khan and Nehru: Courtesy - Vintage Pakistan

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Muslim Nations Face Growing Pressure to Recognise Israel—Is Pakistan Next?

ISLAMABAD: As the Gaza ceasefire inches closer, pressure is mounting on Muslim countries to reconsider their long-standing refusal to recognise the state of Israel.

U.S. President Donald Trump, speaking to reporters on Friday, hinted that more countries would join the accords. “Now that Iran has been taken out in terms of a nuclear threat, and they have been completely taken out—at least for a very long time—I think a lot of people are going to be joining the Abraham Accords,” Trump said.

The U.S. campaign to recognise Israel was launched in 2020 under the title Abraham Accords. The UAE was the first Gulf state to normalise relations with Israel. Bahrain, Sudan, and Morocco followed soon after. The deal was presented as a peace breakthrough in the region, although no Palestinian representatives were involved in the talks. Many believe the Accords form the foundation of Trump’s Middle East diplomacy.

In May, Trump announced that the U.S. and the United Arab Emirates had agreed to business deals worth over $200 billion. Altogether, the U.S. has now made deals worth more than $2 trillion with countries in the Gulf region.

Pakistan is among the Muslim countries that do not recognise the state of Israel. It maintains a long-standing position of no recognition without a just solution for Palestine. Western diplomacy had some success when the recognition of Israel began to be discussed publicly and on talk shows in several Muslim countries.

Senior Pakistani journalist Hamid Mir responding to a question claimed that he was present in a high-level meeting where several television anchors met with then Prime Minister Imran Khan to discuss the possibility of recognising Israel. According to Mir, many participants urged the Prime Minister to immediately normalise ties and join the Abraham Accords.

Mir said he intervened and advised Imran Khan against the move, stating, "You are not a bigger leader than Quaid-e-Azam Muhammad Ali Jinnah. Let us continue with his policy on Israel."

He claimed that after hearing this, Imran Khan agreed and ended the meeting without taking further steps toward recognition.

However, that diplomatic momentum was lost when Israel attacked Gaza, and Muslim sentiment shifted further after the recent U.S. attack on Iran.

On 7 October 2023, Hamas, a Palestinian group attacked Israel. Isreal retaliated with full army might. 

According to reports, at least 55,000 Palestinians killed since October 2023.

Media reports suggest that pressure is once again increasing on Pakistan to recognise Israel. Responding to a question about the reported pressure on Pakistan to recognise Isreal, Defence Minister Khawaja Asif avoided a direct answer but said, “The entire Muslim world will have to answer for Israel’s war crimes, the killing of innocent children and women, in the court of God on the Day of Judgment.”

Analysts believe that any decision in favour of recognising the state of Israel could be politically fatal for the current government, which is already struggling to prove its legitimacy to supporters of jailed former Prime Minister Imran Khan and his party, Pakistan Tehreek-e-Insaf (PTI).

By Atif Khan

Atif Khan is an Islamabad based journalist.

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Pakistani Youth Rising: Global Achievements and Opportunities in Asia

Pakistan's Football Women Team recently won match in Malasiya (Radio Pakistan)

By: Abdullah Farooqui

Islamabad: Pakistan is a country blessed with a vibrant and energetic youth population. With nearly two-thirds of its people under the age of 30, the future of the nation rests heavily on the shoulders of its young men and women.

Despite facing many challenges, Pakistani youth are breaking barriers and making their mark on the global stage. From winning international competitions in technology and sports to leading climate change initiatives and excelling academically, their stories are a beacon of hope and inspiration. 

At the same time, many Pakistani students are exploring opportunities across Asia for higher education, research, employment, and even residency. This feature celebrates the remarkable achievements of Pakistani youth and highlights the promising pathways available to them in Asian countries. 

Pakistani Youth: Stories of Global Success

Pakistani youth have recently achieved extraordinary milestones that reflect their talent, resilience, and creativity.

• Technology and Innovation: Pakistani students topped the prestigious Harvard University CS50x course in 2025, a challenging computer science program with millions of participants worldwide. They also won the CS50x Puzzle Day, a global logic competition. These victories were supported by dedicated mentors like Dr. Zafar Shahid, who returned from Silicon Valley to nurture young talent. 

• At TEKNOFEST 2025 in Türkiye, Pakistani female students Asma Fatima and Anaya Khan won first place in an aerospace and technology competition, receiving personal congratulations from President Recep Tayyip Erdoğan. 

• Young innovators like Talha received grants from the US Embassy to pilot climate change solutions, while Zeeshan Shahid won the National Innovation Award for inventing an airbag vest for bikers.

• Academic and Literary Excellence: 13-year-old Dua Farhan Ahmed won the Young Author Award 2024 in Dubai, while many students like Suhaib from Danish School topped their matriculation and F.Sc. exams.

• Sports: Haris Khan won gold in wrestling at the Children of Asia Games 2024, and 12-year-old squash prodigy Muhammad Sohail Adnan became World No. 1 in the U13 category. 

• Climate Leadership: At the Commonwealth Asia Youth Alliance Summit 2025, 20 Pakistani youth received the Climate Champions Award for their work in renewable energy, water conservation, and climate education.

• Social Impact: Kashf Shah founded Pakistan’s largest volunteer network, planting 100,000 trees and organizing free medical camps. These achievements and many more to come highlight the immense potential of Pakistani youth and their ability to shine on the world stage despite many obstacles. 

Opportunities for Pakistani Students in Asia: Education, Research, Jobs, and Residency

Asia offers a wealth of opportunities for Pakistani students to pursue higher education, engage in research, find jobs, and even gain residency. Here is a country-wise overview: 

China 

• Education & Scholarships: China remains a top destination for Pakistani students, especially in fields like engineering, medicine, and technology. The Chinese government offers fully funded scholarships for undergraduate, graduate, and PhD studies. After COVID-19 restrictions eased in 2022, China resumed issuing student visas (X1 visa) for long-term study, allowing Pakistani students to return to campuses across the country. 

• Research: Chinese universities actively collaborate with Pakistani scholars, offering research opportunities in science, technology, and development studies. Platforms like the Asian Development Bank (ADB) also provide internships and research fellowships in Manila, open to students from Pakistan and other Asian countries.

• Jobs: While direct employment opportunities for international students are limited, many Pakistani students engage in internships and part-time jobs related to technology and language tutoring.

• Residency: Students can apply for residence permits linked to their study programs. China’s visa policies have become more welcoming, facilitating longer stays for research and study. 

• Trade & Business: The China-Pakistan Economic Corridor (CPEC) continues to strengthen business ties, providing Pakistani entrepreneurs with opportunities in China’s vast market.

Japan

• Education & Research: Japan offers unique programs like the Campus Asia Program (CAP) at Ritsumeikan University, which focuses on East Asian languages, cultures, and international careers. Pakistani students can study Japanese, Chinese, and Korean languages and pursue graduate studies in Japan, China, or South Korea.

• Jobs: CAP graduates have found employment in trading companies, manufacturers, airlines, travel agencies, and education sectors across East Asia. Many leverage their language skills and networks to build international careers. 

• Residency: Japan offers student visas that can be extended for graduate studies or employment. Graduates may apply for work visas if they find employment in Japan. • Scholarships: Various Japanese government scholarships (MEXT) and university scholarships are available for Pakistani students.

Malaysia 

• Education: Malaysia is an affordable and popular destination for Pakistani students, especially in business, IT, and healthcare fields. Universities like Universiti Malaya and Monash Malaysia offer scholarships for international students. 

• Jobs: Malaysia offers work visa options for skilled professionals, particularly in technology and healthcare sectors. 

• Residency: The Malaysia My Second Home (MM2H) program allows foreigners, including Pakistanis, to obtain long-term residency. This program suits retirees, businesspeople, and professionals seeking to settle in Malaysia. 

• Business: Malaysia’s strategic location and business-friendly environment provide opportunities for Pakistani entrepreneurs. 

Turkey

• Education: Turkish universities offer quality education with scholarships for Pakistani students, particularly in medicine, engineering, and social sciences. 

• Jobs & Research: Students can work part-time and engage in research projects. Turkey’s growing economy attracts international talent. 

• Residency: Turkey provides residency permits through employment or business registration, making it easier for Pakistani professionals and entrepreneurs to settle. 

• Business: Turkey’s strategic location between Asia and Europe offers Pakistani business professionals access to wider markets. 

South Korea 

• Education & Research: Pakistani students enrolled in programs like CAP can study Korean language and culture, and pursue graduate studies in South Korea. 

• Jobs: Graduates find opportunities in Korean companies, especially in IT, manufacturing, and education sectors. 

• Residency: Student visas can be converted to work visas after graduation, allowing longer stays. 

Central Asia (Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan) 

• Education & Research: These emerging markets offer growing opportunities in agriculture, textiles, and manufacturing. Pakistani students can pursue studies and research in regional development and trade.

• Jobs & Business: Pakistan is expanding trade relations with Central Asian countries, encouraging joint ventures and special economic zones. This opens doors for Pakistani entrepreneurs and professionals.

• Residency: Residency options are evolving with increased economic cooperation. Regional and International Internship Opportunities 

• The Asian Development Bank (ADB) offers internships and postgraduate scholarships for students from Pakistan and other Asian countries. These programs provide practical experience in economics, management, science, and technology. 

• The SAARC Internship Programme places students and researchers at the SAARC Secretariat in Kathmandu for research assignments, promoting regional cooperation and understanding. 

Scholarships and Exchange Programs: 

• The Fulbright Program offers scholarships for Pakistani students to pursue Master’s and PhD degrees in the United States, along with professional fellowships and teaching assistantships.

• Many Asian countries, including China, Japan, Malaysia, and Turkey, provide government-funded scholarships for Pakistani students.

• Universities often offer merit-based scholarships and research grants to attract international talent. 

Why Asian Opportunities Matter for Pakistani Youth

Asia is a vibrant region with rapidly growing economies, advanced educational institutions, and diverse cultures. For Pakistani youth, studying and working in Asia offers: 

• Affordable and quality education compared to Western countries. 

• Access to cutting-edge research and technology in fields like IT, engineering, and environmental science. 

• Employment opportunities in multinational companies, startups, and research institutions. 

• Cultural exchange and language skills that enhance global employability. 

• Pathways to residency and business opportunities in dynamic markets. 

Is It Easy to Get These Opportunities? 

No, it is not easy. These opportunities are competitive and require: 

• Strong academic records 

• Good language proficiency 

• Well-prepared applications 

• Persistence in meeting deadlines 

• Financial planning But with proper planning, hard work, and determination, Pakistani youth can successfully access these opportunities. 

Many students have done so before you, as recent achievements of Pakistani youth in global competitions and scholarships prove. Final Advice Pakistani youth should view studying and working abroad as an investment in their future. 

It demands effort and patience but offers immense rewards—world-class education, global exposure, research experience, and career advancement. Start early, prepare thoroughly, seek scholarships, and be ready to embrace challenges. The path may be tough, but the success stories of Pakistani youth show it is achievable.

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Shehbaz Heads to ECO Summit as Regional Tensions Rise

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif will attend the 17th Economic Cooperation Organisation (ECO) Summit in Baku, Azerbaijan, from July 3 to 4, where he will discuss trade, connectivity, energy cooperation, and sustainable development.

“During the summit, the prime minister will share Pakistan’s perspective on key regional and global challenges, reaffirm Pakistan’s commitment to the ECO Vision 2025, and advocate for enhanced intra-regional trade, transport connectivity, energy cooperation, and sustainable development,” the foreign office said.

Sharif will also meet with ECO leaders on the sidelines of the summit, the statement read.

Pakistan, Iran and Turkiye, founded the Regional Cooperation for Development (RCD) organisation in 1964. Later, more states joined, and RCD evolved into ECO.

Its current members include Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Türkiye, Turkmenistan, and Uzbekistan.

The 17th Summit is taking place when two key member states — Pakistan and Iran — are facing serious disruptions to trade and connectivity. India suspended the Indus Waters Treaty, a 1960 agreement that prohibits it from storing or diverting the flow of western rivers in a way that affects Pakistan’s downstream access. Pakistan, citing this suspension as an act of war, shut down overland trade routes, including the Wagah border, and banned all Indian air traffic through its airspace.

Tensions escalated further after India carried out airstrikes inside Pakistani territory, alleging Pakistan’s involvement in the Pahalgam attack. The Pakistan Air Force reportedly downed numerous Indian Rafales with its Chinese-made jets. 

Separately, the Iran-Israel conflict continues to affect the region’s energy and transport corridors and global oil supply chain. 

By Atif Khan

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Asia’s Connectivity Gap Holding Back 4.7 Billion Lives

Asia is home to over 4.7 billion people, or more than half the world’s population. Still large parts of the region remain disconnected, both physically and digitally.

Despite rapid urban growth, many parts of the continent still suffer from inadequate roads, outdated railways, and weak cross-border links. Today, as global trade shifts and climate challenges intensify, the urgency to improve infrastructure across Asia is greater than ever.

Below is a brief country-wise overview of where key Asian nations stand on connectivity—and what’s at stake if they fail to bridge the gap.

Pakistan eyes heavily on the China–Pakistan Economic Corridor to get connected with the world, and to modernize its road and rail systems, but despite considerable development on CPEC, many parts of the regions still remain isolated. Experts believe stronger links with Iran, India, and Afghanistan could unlock regional trade, stimulate job creation, and improve disaster response.

India, the world’s second-most populous country, has made somke serious investments in roads, railways, and air travel. However, rural India continues to lag behind urban centers, both in transport and internet access. India and Pakistan can gain significantly by reopening trade. According to World Bank–affiliated research, Pakistan’s exports to India could grow by as much as 80%. Similarly, India could benefit from a a market of over 240 million Pakistanis, a potentially larger export market than Bangladesh .

Bangladesh has made visible gains in ports and highways, but it struggles with road safety and inadequate public transport. Planners say better links between rural producers and urban markets could cut poverty and expand export capacity, especially in garments.

Vietnam’s infrastructure spending has largely focused on urban development, while many rural regions remain disconnected. Improved connectivity could enhance the country’s role in global supply chains and boost tourism in less-visited areas.

Thailand’s infrastructure is relatively advanced, but border provinces, particularly in the south, still lack investment. Analysts say expanding road and rail access could solidify Thailand’s role as a regional logistics hub and attract new investors.

Myanmar faces deeper challenges. Political instability and underdeveloped transport systems have left much of the country isolated. Connectivity improvements, if politically feasible, could open new trade routes and support access to basic services.

In the Philippines, geography poses its own barrier. With more than 7,000 islands, the country struggles with inter-island transport and uneven internet coverage. Improved ferry systems and expanded digital infrastructure are essential for inclusive growth and disaster resilience.

Sri Lanka has invested in major road and port projects, but rural areas remain underserved. Stronger internal connectivity could help diversify the economy beyond tourism and tea exports, while also improving access to health and education.

Nepal’s mountainous terrain continues to limit infrastructure growth. Analysts say better road and air links are essential to support tourism, connect farmers to markets, and facilitate trade with India and China.

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