Infrastructure investment is essential to boost BBIN trade: FNCCI president

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has said investment in physical infrastructure is essential for promoting trade among the BBIN (Bangladesh, Bhutan, India and Nepal) countries.

He made this remark at a programme on Nepal’s logistics development and BBIN connectivity organised by the Nepal Freight Forwarders Association (NEFFA) to mark the 31st Cargo Day in Kathmandu.

FNCCI President Dhakal expressed confidence that only proper development of physical, institutional and regional infrastructure would significantly contribute to trade and economic growth. “Physical, institutional and regional infrastructure development supports overall economic growth,” he said. “In Nepal, road, rail, airport and warehouse infrastructure are still insufficient. Especially at border crossings and major trade routes, logistics hubs are needed.” He added that logistics development would play a significant role in increasing Nepal’s exports and attracting foreign investment.

He said that an effective and digital logistics system would reduce costs for businesses and industries and create a more efficient supply chain. He also emphasised the importance of sea access for a landlocked country like Nepal. Mentioning that the private sector has invested 100% in the transport and freight sector, he stated that the government should pay special attention to its development. Additionally, he said the private sector is ready to work within a public–private partnership (PPP) model for this purpose.

Dhakal pointed out that the value-added tax (VAT) imposed on freight services has affected those services, leading to higher prices for goods and forcing consumers to pay more. He said this poses a risk of declining exports and an increased trade deficit.

He complained about problems in implementation of certain measures that should be addressed through government law amendments, budget provisions and monetary policy, and urged the government to act with confidence.

The FNCCI President Dhakal also praised NEFFA’s contribution to cargo services since its establishment and said he expects its role to become even more effective in the future.