Kathmandu, January 15:

Experts and entrepreneurs at a discussion programme organised by Nepal-India Human Development and Friendship Association (NIHDFA) here today said that Indo-Nepal Transit Treaty should be renewed without any ambiguities.

The transit treaty between Nepal and India expired on the first week of January.

However, the meeting of the joint-secretaries of both the countries held in New Delhi in the first week of january has extended the treaty for three more months only instead of renewing it for the next seven years.

Speaking at the programme, Surendra Bir Malakar, acting president of Nepal Chamber of Commerce (NCC) said, “a cloud of uncertainty hovers over Nepali business with the treaty only being extended for three more months.”

“When there were no obligations from either side, it should have automatically renewed for the next seven years’ term,” he said adding that the Indian government is positive towards the treaty but the state governments have raised questions over the issue of renewal.

Chandi Raj Dhakal, president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) said that foreign investors are now hesitant to invest in Nepal as the treaty will expire in next three months and the renewal remains still uncertainty. “The issue of development of natural resource industry has been raised time and again but there has been no concrete frame-work for the promotion of the sector,” Dhakal added.

Nepal should reap the benefit of being located between the two economically growing titans of Asia. “If Nepal could be developed as a transit point between these two economic giants then there lies chances that our indigenous products would get promotion,” he said.

Basistha Mani Tripathi, member NIHDFA, Govinda B Shah, central member, Yuvraj Bhusal, secretary at the ministry of land reforms and management, Tara Nath Ranabhat, speaker of the dissolved house of parliament also spoke on the occasion.