The Nepali private sector has urged China to invest in industries in Nepal to manufacture goods for export to the northern neighbour to reduce the trade deficit. 

In fiscal 2014-15, Nepal had a trade deficit of $990 million with China with exports of $23.7 million and imports amounting to US$ 1.01 billion. 

China is Nepal’s second largest trade partner after India and accounts for 12 percent of its total foreign trade, according to Nepal Rastra Bank.

“We welcome Chinese investment in industries exporting to China and South Asia to reduce the trade gap and increase Nepal’s exports to China,” said Pashupati Murarka, president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), while speaking at a meeting of the China Council for the Promotion of International Trade (CCPIT) in Beijing on Tuesday. 

“We are eager to cooperate to promote Chinese investment in Nepal, especially in the special economic zone near the border with China. A buy-back arrangement for the products manufactured here can be mutually beneficial.” 

Murarka is a member of the entourage accompanying Prime Minister KP Sharma Oli on his China visit. 

Although China has provided duty-free access to over 8,000 Nepali products, Nepal has not been able to utilize the facility. “We are grateful that the Chinese government has accorded zero tariff facility to our products, but the volume of trade will not increase until the facility is simplified by both the sides,” said Murarka. 

During his speech, he said that Chinese investors could put money in hydropower, tourism, mining and minerals, agriculture, infrastructure, information and communication technology, health and education in Nepal.

The FNCCI and the CCPIT signed an MoU in November 2002 to strengthen and enhance mutually beneficial trade, investment and economic cooperation. Murarka also said that the FNCCI was also eager to organize a Nepal-China Investment Seminar coinciding with the 50th anniversary of the FNCCI this year on a mutually agreed date.

CNI hosts welcome luncheon

KATHMANDU: The Confederation of Nepalese Industries (CNI) on Monday organised a programme in Beijing to welcome the private sector delegation accompanying Prime Minister KP Oli on his China visit. Members of the Nepali and Chinese business communities were present at the luncheon jointly hosted by the CNI and Hongshi Cement to honour the business people of Nepal and China. “The ceremony was also organised to spread the message among Chinese investors that Nepal has a conducive business environment for foreign investment.” (PR)