Kathmandu, Mar. 15:Despite His Majesty’s Government’s willingness to establish a export processing zone (epz) in the Eighth Plan with a view to promoting Nepalese exports, this could not come into force due to lack of concrete programmes.

A budget of five million rupees has been allocated under the current Ninth Plan for the export promotion fund aimed at establishing the epz, free trade export zone and technological park and export oriented unit.

Minister for Foreign Affairs and Finance Dr. Ram Sharan Mahat inaugurated a seminar on ‘Investment opportunities in Nepal’ organised with an objective of familiarising Nepal’s industrial and business community with the export processing industry under the joint auspices of the Nepal-India Chamber of Commerce and Industry, Indian Embassy and the B.P Koirala India-Nepal Foundation here today.

Speaking on the occasion, Minister Dr. Mahat said as Nepal is a landlocked nation, the plan to establish the export processing zone for the high price products near the Tribhuwan International Airport did not materialise due to lack of availability of land, it has been planned for Birgunj.

Stating that investment and export trade have increased because of the industrial policy adopted by Nepal after 1991, Dr. Mahat said despite some constraints 40 percent increase has been recorded in exports to India.

He said South Asia is rich in manpower, the number of consumers and talents adding that an export oriented strategy is necessary for the economic development of the country.

Royal Nepalese Ambassador to India Dr. Bhekh Bahadur Thapa said we should develop ourselves as an attractive market keeping in mind the three million economically capable Indian consumers adding that we could learn from the experience of our neighbouring countries.

Indian Ambassador K.V. Rajan said Indian investment in Nepal and the Nepalese exports to India have been increased after the agreement signed on trade and transit in 1996.

Director of the Indian Ministry of Commerce Amita Prashad said the concept of export processing zone was for the first time developed in India in 1965 and that the concept has changed after liberalisation and globalisation.

President of Nepal-India Chamber of Commerce and Industry Rukma Shumsher Rana said there have been improvements in Nepal-India trade relations since a few years after the signing of various agreements and treaties.

Convenor of the seminar Diwakar Golchha spoke highly of Indian cooperation in the economic development of Nepal.