'Reforms must to expedite capital expenditure'

KATHMANDU:

Diplomats and experts have suggested Nepal to increase connectivity of roads, airports and railways for economic development and to reap the benefits from two large neighbouring economies — India and China — and other markets.

Addressing the Annual Economic Diplomacy Conference 2015, today, Ambassador, Delegation of European Union to Nepal Rensje Teerink, said that connectivity is the key issue in Nepal. Giving an example of the recent incident of Turkish Airlines blocking Nepal’s connection with the world for four days, she underlined the need of more investment in airport infrastructure and political will to do so.

“A second runway at the airport or development of a second international airport — these works should be carried out without delay,” said Teerink. She also said that the country should provide some incentives and improve the investment climate to promote foreign direct investment (FDI) in different sectors. In terms of size, EU is the third largest FDI partner of the country.

In a bid to discuss about the prospects of economic and business opportunities in Nepal, Asian Institute of Diplomacy and International Affairs (AIDIA) had organised the conference under the theme ‘Making Nepal an Economic Hub in Asia’. Speakers said that Nepal holds huge potential in multiple sectors, including infrastructure, tourism, trade and education.

“There is need of an integrated transport network among the South Asian countries for mutual prosperity,” opined Mashfee Binte Shams, ambassador of Bangladesh to Nepal. As per her, Nepal should take advantage from China and India and South Asia Free Trade Area (SAFTA) by removing non-tariff barriers and increasing trade harmonisation.

Despite Nepal being in a unique and strategic location between the two big economies, the country’s trade deficit is escalating.

Meera H Sannyal, a leader of Aam Aadmi Party of India and a former banker, said along with its strategic location, Nepal holds competitive advantages in tourism, hydropower, trade and education. She added that Nepal should consider taking benefit from geriatric care, medical tourism, production of high value agricultural goods and manufacturing high-end products to sell them to India and China.

The conference brought together around 200 participants from various walks of life, including diplomatic

missions, government authorities, businesses, political parties, economists and universities.

AIDIA, an independent foreign policy think-tank based in Kathmandu, has said that the event has helped to advance the country’s local,

regional, and global economic position and highlighted potentials for FDI and trade, among others.

Source: THT