KATHMANDU: Letters and cargo packages of Postal Services Department will now be transported by Nepal Airlines.

An agreement was reached between the Nepal Airlines Corporation (NAC) and the Postal Services Department on Tuesday to do the work that Thai Air had been doing for a long time.

NAC General Manager Dim Prakash Poudel and Director-General Abha Shrestha Karna of the Postal Services Department inked the agreement.

According to NAC General Manager Poudel, an agreement has been signed to transport goods and letters in the international arena.

As per the agreement, NAC will haul cargo and goods of Postal Services Department to all NAC destinations from July 1, 2021.

The Postal Services employs Air India for transport to India. It is believed that the agreement between the Department and NAC will help in retaining foreign exchange reserves of millions of rupees being paid to foreign airlines within the country earlier.