Bangladesh and Bhutan yesterday signed two memoranda of understanding on health cooperation and internet connectivity and also explored plans to formally begin talks on a bilateral free trade agreement (FTA).

Thimphu aims to sign the FTA "as quickly as possible" and hopes that Bhutan will become the first country to conclude a free trade deal with Bangladesh, said the visiting Bhutanese Prime Minister, Tshering Tobgay, in his meeting with Chief Adviser Muhammad Yunus.

Tobgay arrived yesterday morning on a two-day state visit.

Both sides discussed a plan to formally launch discussions on an FTA. Bangladesh and Bhutan previously concluded a preferential trade agreement in 2020.

The visiting Bhutanese PM stressed the need for deeper trade and economic cooperation. "If we have to prosper, we must prosper together," he said.

The two leaders also agreed to establish a joint working group to promote two-way tourism, said a statement of the Chief Adviser's Press Wing.

Bhutan is developing a major economic hub, the Gelephu Mindfulness City, and sought Bangladesh's cooperation, including space in Narayanganj for loading and unloading Bhutanese cargo, Tobgay said.

Bhutan is a key part of Dhaka's vision for a regional trade and economic cooperation, Yunus said, adding that he had instructed officials to clear Bhutanese containers as quickly as possible.

Yunus also invited Bhutanese nationals to avail themselves of healthcare services and medical education at the 1,000-bed hospital and a medical college in the northern district of Nilphamari that is under construction.

Following the formal talks, Bangladesh and Bhutan signed two memoranda of understanding: one on healthcare services and the other on the trade of international internet bandwidth.

Under the internet bandwidth agreement, Bhutan will import bandwidth from Bangladesh.

Yunus expressed hope that more Bangladeshi doctors and healthcare workers will now be able to work in Bhutan, particularly in the upcoming new economic city of Gelephu, now under development in the Himalayan kingdom.

Bangladesh also announced an increased number of seats for Bhutanese students in Bangladeshi medical colleges and earmarked seats in BUET.

The two leaders also discussed prospects for Bangladesh to import hydropower from Bhutan, including the possibility of a trilateral agreement involving India to facilitate electricity trade.