Boosting trade with Nepal thru' Banglabandha remains a far cry
Naim-Ul-Karim | Monday, 14 July 2008
The government's plan to bolster trade with Nepal through a direct road link across Banglabandha land port remains a far cry due to India's reluctance to provide transit facility, said a senior official Sunday.
He said both the countries need transit facilities through India for establishing the direct road link prior to making Banglabandha a land port for boosting intra-regional trade.
The official said the Bangladesh Land Port Authority (BLA) has already dispatched a proposal to the ministries concerned of the government to take the matter across the table when foreign secretaries of Bangladesh and India meets in New Delhi on July 17.
"We have already requested the Ministry of Foreign Affairs and the Ministry of Commerce to take up the matter for discussion with India," he said.
The official said BLA has completed all required works including infrastructure development to make Banglabandha a land port.
An analyst told the FE that making Banglabandha operational as land port only for trade with India in large volume will not yield much benefit unless Nepal is also included in the loop.
Currently, he said trade between the countries are being conducted on a transshipment basis as Indian authorities allow Nepalese trucks to travel up to zero point.
Regarding trade between the countries, which is very nominal, he said the reason is that both exporters and importers of Nepal and Bangladesh are reluctant to engage in huge volume of trade, as the process of transshipment is cumbersome.
According to statistics of the Export Promotion Bureau and Bangladesh Bank, Nepal-Bangladesh bilateral trade stands on an average at less than Tk1.0 billion a year.
Bilateral trade between Nepal and Bangladesh will record hefty growth if both the countries get transit facilities for quick movement of goods, an exporter said.
He said: "Importing essentials including perishable commodities from Nepal and near by countries will be easier and cost effective in the wake of food crisis in the global market."
When asked, he added Nepal exports biscuit, crockery, dot-pens and some agricultural commodities. On the other hand, Bangladesh exports some manufactured goods including medicines, furniture, melamine and tissue papers.
He said both the countries need transit facilities through India for establishing the direct road link prior to making Banglabandha a land port for boosting intra-regional trade.
The official said the Bangladesh Land Port Authority (BLA) has already dispatched a proposal to the ministries concerned of the government to take the matter across the table when foreign secretaries of Bangladesh and India meets in New Delhi on July 17.
"We have already requested the Ministry of Foreign Affairs and the Ministry of Commerce to take up the matter for discussion with India," he said.
The official said BLA has completed all required works including infrastructure development to make Banglabandha a land port.
An analyst told the FE that making Banglabandha operational as land port only for trade with India in large volume will not yield much benefit unless Nepal is also included in the loop.
Currently, he said trade between the countries are being conducted on a transshipment basis as Indian authorities allow Nepalese trucks to travel up to zero point.
Regarding trade between the countries, which is very nominal, he said the reason is that both exporters and importers of Nepal and Bangladesh are reluctant to engage in huge volume of trade, as the process of transshipment is cumbersome.
According to statistics of the Export Promotion Bureau and Bangladesh Bank, Nepal-Bangladesh bilateral trade stands on an average at less than Tk1.0 billion a year.
Bilateral trade between Nepal and Bangladesh will record hefty growth if both the countries get transit facilities for quick movement of goods, an exporter said.
He said: "Importing essentials including perishable commodities from Nepal and near by countries will be easier and cost effective in the wake of food crisis in the global market."
When asked, he added Nepal exports biscuit, crockery, dot-pens and some agricultural commodities. On the other hand, Bangladesh exports some manufactured goods including medicines, furniture, melamine and tissue papers.