Roundup: Nepal viewed as transit for China, India linkage

A one-year internal homework to develop Nepal as a transit point between China and India has received a fresh impetus.

The Nepali Ministry of Industry, Commerce and Supplies has carried out a study and submitted its recommendations.

The ministry's report recommends that Nepal should provide the transit facility with the objective of expanding its service sector and physical infrastructure development.

Nepali King Gyanendra communicated Nepal's readiness to become a transit point during his meeting with Chinese President Hu Jintao and Indian Prime Minister Manmohan Singh on the sidelines of the Asian-African Summit held recently in Jakarta, Indonesia.

"Nepal could be the transit point between the two giants in Asia, China and India," the king said after his arrival in Kathmandu from Jakarta last month, adding, "It is a trilateral subject, so we will promote this matter from our side."

Meanwhile, Nepali experts say that developing Nepal as a transit point between China and India will help Nepal's trade integration, tourism promotion and foreign direct investment.

In an interaction program on possibility of Nepal to be a transit point between the two countries jointly organized by Nepal Chamber of Commerce and Society of Economic Journalists here on Wednesday, experts urged Nepal not to consider itself as landlocked but land linked in the context of globalization.

Purusottam Ojha, acting secretary of the Ministry of Labour and Transport Management, emphasized the need for developing Nepal's transit route as a transport network with various non-physical facilities like fast custom clearance and less paper process.

Efficient transport network contributed to the boosting of transnational trade, Ojha said.

Nepal is strategically located between the two giant economies in terms of lower physical, political and economic distance, Ojha noted, adding, "So, Nepal can be one of the best options for the trade expansion between our two neighbors."

Nepal's former Ambassador to China Rajeswor Acharya emphasized the need for transit agreement with China as Nepal has already signed the agreement with India.

A transit point could be a milestone for the access to Central Asia, an area with a huge storage of gas and petroleum, and will be important for Nepal, Acharya revealed.

"The mindset of assuming China's Tibet Autonomous Region as the only market on the north side should be changed and we should extend our horizon of thinking," Acharya noted, adding that tourism and the hydropower sector of Nepal could be benefited if Nepal was recognized as one of the best transit points.

Similarly, Mohan Man Sainju, vice-chairman of Poverty Alleviation Fund, a governmental organization, said that there was a huge chance for Nepal to export its bio-diversity products following Nepal's transition into a transit point.

However, Nepal should do homework on technical, legal and managerial aspects before becoming a transit point, Sainju noted.

Rajesh Kaji Shrestha, president of Nepal Chamber of Commerce, emphasized the need for air transit in addition to land transit and said, "Infrastructures related to road, airport and terminal need to be improved for effective transit facilities."

Meanwhile, Federation of Nepalese Chamber of Commerce and Industry, a non-governmental organization, is going to hold a trilateral discussion within five months among businessmen and traders of the three countries on the issue of Nepal working as transit point.

Source: Xinhua