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E C O N O M Y


 Kathmandu Monday February 10, 2003  Magh 27,  2059.


Lack of direct links affecting Nepal-Pak trade

By A Staff Reporter

KATHMANDU, Feb. 9: Even after nearly four decades of diplomatic ties, Nepal and Pakistan have been unable to exploit the potential in the field of trade. The volume of trade between the two South Asian countries has even declined in recent years.

"As we belong to the age of economic diplomacy, my first priority will, therefore, be on reviving the declining trade and exploring new areas of trade after I join the office in Pakistan," said newly-appointed Nepalese envoy to Pakistan Pushkarman Singh Rajbhandari today.

"Nepal can export tea to Pakistan in big quantities as Pakistan is one of the largest consumers of tea in the world," he said.

The career diplomat was speaking at a programme "Nepal-Pakistan Relations: Formalities and Realities" organised by Nepal Nationalist Front (NNF) here today.

"Both the countries have reciprocated their support to each other at several international forums," said Rajbhandari.

Promoting trade and commerce between Nepal and Pakistan is not without hurdles and difficulties, he said. They are geo-political and lack of willingness on the part of the private sectors in both the countries.

Both the countries export carpets and garments to European and American markets. These commonalties along with the lack of study to identify the needs of each other's market are also responsible for the decline, he added.

The problem also lies with Nepal and Pakistan not sharing a common boarder and direct air and sea links. He also stressed on renewing the agreement of certificate of origin as it has expired.
The Nepalese envoy also emphasised on regional trade agreements like SAFTA and SAPTA so as to ease trade and the flow of goods not only between the countries, but also in the entire region.
He also stressed on resuming flights by national flag carriers between the two countries to promote trade and tourism. These carriers include Pakistan International Airlines (PIA) of Pakistan and Royal Nepal Airlines Corporation (RNAC) of Nepal.

Speaking on the occasion, Pakistani envoy to Nepal, Zamir Akram, reacted to Indian Prime Minister's recent allegations that Pakistan was using Nepalese land to operate anti-Indian activities.
"The allegations are ridiculous and baseless and defy political logic and geopolitical realities as both the countries don't share a common border," said the Pakistani diplomat. "Pakistan respects Nepal's sovereignty and integrity."

On the occasion, he said tremendous potential existed in promoting trade between Nepal and Pakistan.

Pakistan is Nepal's good neighbor, said Phanindra Nepal, president of the NNF.


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