Chandra Prasad Dhakal, President of Federation of Nepal Chambers of Commerce & Industry, said that there is a need for effective infrastructure to promote interregional trade and investment in BIMSTEC countries.
Addressing the International Business Forum Special Session of the BIMSTEC Business Conclave in Calcutta, India on Tuesday, Chairman Dhakal said that there is a need for good and efficient infrastructure such as roads, waterways and railways to promote regional trade and investment.
In addition, it is necessary for BIMSTEC countries to invest jointly to increase air and digital connectivity, improve existing connectivity infrastructure and build new infrastructure, he said.
Stating that it is necessary to increase the physical infrastructure such as roads and ports for easy transportation, he also said that joint efforts can be made to develop and upgrade the infrastructure to support the development of the regional value chain.
“Promoting cross-border energy cooperation, including the development of energy-related infrastructure and energy trade, can support the development of energy-intensive industries in regional value chains.
For example, Nepal-Bangladesh and India are working on a hydroelectric transmission line to export Nepal’s hydropower to Bangladesh. The electricity produced in Nepal will reach Bangladesh through India. It can be extended to other BIMSTEC countries and beyond,” said Dhakal.
In addition to connectivity infrastructure, BIMSTEC countries need to remove and reduce various non-tariff barriers to trade to facilitate regional trade and investment, he said.
BIMSTEC countries can ease and simplify their trade and investment policies to create an enabling environment for regional value chains. Topics such as simplifying customs procedures, simplifying policy rules and promoting investment facilitation measures can be included in it.
“The free trade system of the region can facilitate the increase of bilateral and multilateral trade between the member countries. “Nepal can benefit from the elimination or reduction of taxes on its exports, thereby increasing the volume of trade and diversifying the export base,” he said.
He said regional connectivity and trade agreements will also help in attracting foreign direct investment (FDI).
“Good connectivity and trade arrangements between BIMSTEC countries will help attract FDI. “If we can improve market access and reduce trade barriers, it will encourage foreign companies to invest in various sectors of the economy, which will create economic growth and employment in BIMSTEC countries,” he said.
Dhakal, the president of the Federation, also presented the idea of forming a BIMSTEC Business Forum to promote interregional trade and investment in BIMSTEC.