Kathmandu, July 29:

Indian envoy to Nepal Shiv Shankar Mukherjee has said Nepal could be developed as a transit point for air cargo between India and the rest of the world.

Referring Nepal’s geographical location, he said that Nepal has an opportunity to serve as a transit point for air cargo.

“We are prepared to examine necessary bilateral arrangements that would make it possible for Nepal to exploit such opportunity, especially after forthcoming revision of air services agreement between the two countries,” he said addressing a programme to mark to the 13th Cargo Day organised by Nepal Freight Forwarders’ Association (NEFFA), today.

Mukherjee further added that India would substantially liberalise the bilateral air services pacts and modify bilateral trade treaty to add international airports to the designated routes for bilateral trade.

External trade is a key to Nepal’s economy, he said adding that elimination of non-tariff barriers and extention of transportation networks are key to trade.