Kathmandu, January 11

Prime Minister Pushpa Kamal Dahal has insisted on trilateral economic diplomacy between Nepal, India and China if the country is to achieve economic prosperity.

Citing that expansion of domestic trade and industry is crucial to accomplish the country’s goal of economic growth, PM Dahal said that Nepal should strategically develop trade and industrial relationship with both the neighbours for the national economy to make substantial progress.

“Nepal can achieve substantial growth in trade and economy if it can promote trade targeting both India and China, which is possible only by enhancing economic diplomacy with these nations,” said Dahal while addressing the 66th annual general meeting of Nepal Chamber of Commerce (NCC) today, adding that the government will actively work to develop strong trade and economic ties with India and China.

According to Dahal, the government has prioritised trilateral connectivity between Nepal, India and China by road, air and rail.

He also informed that the government is working to endorse all pending acts and other legal documents from the Parliament soon.

“The private sector has a bigger role to play in quality development of the country. The government will facilitate the private sector in every way possible and will take their inputs while preparing any policy related to the economy,” added Dahal. Similarly, he also directed chiefs of all top priority projects (P1 projects) to maintain quality and complete the projects on time.

Meanwhile, NCC President Rajesh Kazi Shrestha said that domestic industries are suffering today due to problems related to strikes, labour issues and donation collection activities by different groups, which has resulted in low investor confidence in the industrial sector. Similarly, weak infrastructural development and unclear and unstable government policies are discouraging investment in the country, according to Shrestha.

“While the government talks about bringing foreign investment in Nepal, it should first work hard to create an investment-friendly environment in the country,” he added.

Lamenting the high trade deficit of Nepal and the country’s inability to promote domestic products in the international market, Shrestha urged the government to announce export subsidy on various products that are being exported from the country. “India, China and other nations are giving up to 15 per cent export subsidy on different products while such subsidy being provided to Nepali products is less than two per cent,” he said.

Shrestha also criticised the government for its inability in implementing its guidelines which require all government offices to mandatorily use domestic products in their offices.