Efficient infrastructure stressed to foster intra-regional trade in BIMSTEC

Kathamandu, June 13

President of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) Chandra Prasad Dhakal has said that there was a need for effective and efficient infrastructure to foster intra-regional trade and investment in the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).

Speaking at a Special Plenary Session of the International Trade Forum during BIMSTEC Business Conclave in Calcutta, India on Tuesday, he said, "To foster regional trade and investment, there is a need for an efficient and effective infrastructure such as land, waterway, rail, air and digital connectivity. We need to jointly invest to improve the existing connectivity infrastructure and  build new ones for better connectivity."

Similarly, enhancing physical infrastructure, such as roads, ports, and logistics facilities was essential for the efficient movement of goods within the region, he said, adding that joint efforts could be made to develop and upgrade infrastructure to support the development of regional value chains.

"Promoting cross-border energy cooperation, including the development of energy infrastructure and efficient energy trade can support the growth of energy-intensive industries within regional value chains. For example, Nepal- Bangladesh and India have been working on the hydropower transmission lines, to export electricity produced in Nepal, to Bangladesh, via India. The success of such a project can be expanded to other BIMSTEC nations and beyond also," Dhakal said.

According to him, in addition to connectivity infrastructure, BIMSTEC countries need to remove and reduce the various non-tariff barriers to trade for making regional trade and investment smooth.

BIMSTEC nations can work towards aligning their trade and investment policies to create conducive environment for regional value chains. This can involve streamlining customs procedures, simplifying regulations and promoting investment facilitation measures.

He said that the regional connectivity and free trade agreement would also help attract foreign direct investment (FDI) in the member countries.

FNCCI president Dhakal also floated the idea for the formation of BIMSTEC Business Forum so as to foster intra-regional trade and investment in BIMSTEC.

 Published in The Rising Nepal daily on 14 June 2023.