Kathmandu, March 19:

Former finance minister, former vice-chairmen of National planning Commission (NPC) and representatives of business organisations urged for quick measures to check the deteriorating economy. Speaking at a talk programme organised at the Reporters Club Nepal today, they said that Nepal’s economy is in dire straits.

Commenting on the recent visit of Tang Jiaxuam, Chinese State Councilor, Prithvi Raj

Legal, former vice-chairman of NPC said that the ties between Nepal and China is changing; from traditional to modern, and we have witnessed positive development between the two countries.

The trade between India and China would be largest bilateral trade in few decades and Nepal at present even does not has good infrastructure to develop itself as a transit point between the two economic giants, Legal said. “Our foreign policy should be practical and involvement of stakeholders is a must,” he added.

Badri Shrestha, former finance minister said that Nepal’s economic activities with one of the largest economy of the world is very negligible.

“Despite being a neighbour of China, foreign investment, trade and tourism figures between Nepal and China indicates that we have been failing to tap the opportunities from the economically growing titan,” he said.

“There are tremendous opportunities to attract Chinese investment in Nepal and also in increasing our exports to decrease the trade deficit but what we lack is capacity in doing so,” he said.

Shanker Sharma, vice-chairman at the NPC said that the new five-year plan would address the issues of developing 14 towns that would be pivotal in developing Nepal as a transit point. “Increasing exports and luring Chinese investment in Nepal is a major concern,” he said adding that least developed countries (LDCs) are to get more support and aid under integrated trade frameworks to ease export constraints from the developed nations.

“China is playing a ‘positive engagement’ role globally,” said Naryan Khadka, former vice-chairman of the NPC. “Our strategy should focus on dealing with China 20 years down the line,” he said.

“The revenue collection is unable to meet the current expenditure, forget about spending on big projects,” said Chandi Raj Dhakal, president at Federation of Nepalese Chambers of Commerce and Industry (FNCCI). With none of the stakeholders of economy in harmony, Nepal is failing to meet the targeted GDP growth,” he said, “Penetrating Chinese market is not easy considering their stability. We must be in position to compete in the Chinese market with quality and quantity if we are to reap benefit from the duty free access of Nepali products to China.”

Surendra Bir Malakar, vice-president at the Nepal Chamber of Commerce (NCC) said that issues like quarantine should be dealt with China forehand to prevent what we have been facing with India currently. “Duty free access to 1,550 Nepali goods is a milestone but for decreasing the trade deficit we need to work hard,” he added.