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 Kathmandu Friday January 12, 2001 Paush 28,  2057.


Bangladesh extends zero tariff to Nepali goods

By Satish Jung Shahi

KATHMANDU, Jan 11 -  Foreign Minister Chakra  Prasad Bastola today returned from his four-day official visit to Bangladesh announcing that Bangladesh, agreed "in principle," among others, to provide zero tariff to Nepalese primary goods.

Describing his visit as "the one that will prove to be a milestone in the recent days to come," Bastola also said that Bangladesh agreed to provide a broad-gauze railway line on its territory to directly transport goods between Sirsiya, Birgunj in Nepal and Rohanpur, Bangladesh.

However, Bastola said that India is yet to agree on allowing the broad-gauze railway link, which has to pass through India.

Minister Bastola was talking to reporters this afternoon upon arrival at the capital’s Tribhuvan International Airport after completing his Bangladesh visit. Bastola visited Bangladesh on the invitation of his Bangladeshi counterpart, Abus Samaz Azad.

Bastola was accompanied by three other officials from the Ministry of Foreign Affairs and an official from the Ministry of Industry, Commerce and Supplies.

"Bangladesh has agreed in principle to charge zero tariff to Nepalese goods...Representatives from Bangladeshi ministries were present during our talks when we raised the issue," Bastola said.

"Bangladesh also agreed upon providing visa on-arrival at Banglaband apart from customs, telephone and bank facilities as soon as possible."

If the agreements made during Minister Bastola’s visit is translated into action, experts say, that hundreds of Nepali businessmen and farmers are likely to benefit from the Phulbari route, which provides an access to Mongla Port in Bangladesh.

However, farmers would be benefiting the most, who can export their agro-products, mostly dairy, poultry, fruits and vegetables that are in great demand in Bangladesh. Furthermore, Nepal can also benefit from the export of boulders, also a primary good, which is in high demand in Bangladesh.

Plus, the broad-gauge railway link is likely to provide cheaper and direct transit access to Bangladesh.

"A transport team from Bangladesh is slated to visit the country soon to discuss issues such as modalities of transport, providing cheaper space at Mongla Port for Nepal and so on," Bastola said.

Mechi and Pandragarh Chambers of Commerce will also hold a Nepali trade fair in Pandragarh of Bangladesh on February 10, informed Bastola.

Bastola further said that Bangladesh has also agreed to allow other private airlines along with Royal Nepal Airlines Corporation, the state-owned national flag carrier, to directly connect Nepal with Bangladesh.

On providing more scholarships for Nepalese medical students, Bastola said, Bangladesh agreed to increase the number of scholarship seats to 24 - 21 for MBBS and three for BDS students. The agreed number is up by 10 from present 14.

"We have also requested Bangladesh to make visa fees cheaper for Nepalis students and government officials and re-examine the same for the tourists," Bastola said.

Meanwhile, while speaking to businessmen in Dhaka yesterday, Bastola said that Nepal is positive on operating Nepal-Bangladesh bus services and forming joint bodies on hydropower sector.

When further asked today if Nepal raised the issue of importing Liquid Petroleum Gas (LPG) from Bangladesh, Bastola said that they did discuss the issue, "but this visit was more focussed on concrete issues." "Both gas and hydropower sharing is a long way to go...we need to conduct a lot of extensive studies," Bastola said.

Bastola said that he also discussed the issue of "reactivating" the SAARC Summit, which has been stalled by India due to the last year’s military coup in Pakistan. The Summit was scheduled to be held in Kathmandu in November, 1999.

During the visit, Bastola also extended an invitation to the Bangladeshi Prime Minister on behalf of PM Girija Prasad Koirala. He also invited his Bangladeshi counterpart to visit Nepal at an early date.


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