"China has become global economic powerhouse elevating itself to the world´s second largest economy. As a close neighbor, we have to benefit from the enormous chinese market by exploring market for new Nepali products to narrow down the burgeoning trade deficit with the world´s fastest growing economy," said Khanal while inaugurating the 11th Anniversary of Nepal Trans-Himalayan Border Commerce Association, on Saturday. [break]
Stating that widening trade deficit with northern neighbor is a matter of great concern for the government, Khanal expressed commitment to invite more Chinese investment in Nepal and develop trade infrastructure for trade with the world´s fastest growing economy. Nepal´s trade deficit with China is in the range of Rs 38 billion in absence of sufficient exportable goods. "Chinese investors are looking for investment opportunities, we have to devise plans to lure Chinese investments for the economic growth of our country," said Khanal.
He said that the government would take up economic revolution as the top national priority once the new constitution is formulated and peace process is completed. "We have to face challenges and opportunities resulted in from globalization by putting economic revolution at paramount priority to strengthen export capacity of Nepal," he added. On the occasion, he inaugurated the newly-constructed building of the association in Buddha Nagar, Kathmandu.
Durga Bahadur Shrestha, president of the association, asked the government to facilitate trade with China by developing necessary infrastructure including customs facilities and upgrading road links up to the customs points to bring down the burgeoning trade deficit with the northern neighbor.
"Tatopani customs which is the largest customs check-post along the northern border has to be modernized to make trading more transparent as traders are facing problems in clearance of goods though this point," he said.
He also stressed on the need to immediately open new customs points in Syaphrubesi of Rasuwa, Lamabagar of Dolakha, Lomanthang of Mustang, Kimathanka of Sankhuwasabha, Namche of Solukhumbhu, Tinkar of Darchula.
Stating that the Kodari Highway is congested and deteriorating, he said the highway can be the transit corridor between India and China by upgrading the highway to 6-lane, which can facilitate a more convenient transit of goods between the two countries.
Due to poor condition of roads, transport fare is exorbitantly high for the Kathmandu-Tatopani section of Kodari Highway. He also asked the government to speed up the construction of Larcha Dry Port which has been much delayed despite constant pressure from the business community for its timely completion.
"We have to take economic advantage from China and India, which are seeing a rapid economic growth, by giving priority to economic diplomacy and developing our export capabilities. We should invite Chinese investment in Nepal, especially in agriculture, tourism and hydropower sectors," said Shrestha.
Dr Ram Saran Mahat, former Finance Minister, urged the traders to increase the production of exportable products to bring down the trade deficit with China. Agni Sapkota, Minister for Information and Communications also stressed on the necessity to upgrade the Kathmandu-Tatopani Highway and customs infrastructure to support Sino-Nepal trade.
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