Kathmandu, Feb. 28: Though Nepal has trade agreement with 18 countries, it has been conducting trade with 82 countries, it is learnt from the Ministry of Commerce.

Nepal’s trade was only with Tibet and India fifty years back.

Minister for Commerce Ram Krishna Tamrakar, looking back at the situation of the past, exudes confidence that the foreign trade of the country will go on increasing.

Nepal’s export to India after the restoration of democracy has been found to be increasing as compared to the earlier years.

The minister attributes this growth to the trade treaty signed with India in 2053.

The treaty has provided easy access of the Nepalese products to markets in India. According to the data of 1995-96, 19.6 per cent of the total export of Nepal was to  India and this has increased to 36 per cent in 1997-98.

Thirty per cent of the import trade was with India, according to the data of the previous years.

Nepal has a big trade deficit with India. The data show that Nepal has significant trade with the neighbouring countries of India and China.

As there is open border, it is not unnatural that India has big impact on the trade of Nepal, according to under secretary at the Ministry of Commerce Jeevaraj Koirala.

Being a landlocked country, Nepal has to depend on India for many things. As Nepal does not have direct access to seas,  the structure of foreign trade of the country has been affected to a great extent.

In 1988-99, the trade deficit of Nepal was Rs. 10.0587 billion and it increased to 61.1806 billion in 1997-98. This does not show any significant increase in the export trade.

In 1988-89, the percentage of export was 27.7 in the overall trade. Though the percentage reached 33.4 in 1992-93, the data statistics of 1997-98 shows that the foreign trade of Nepal is not favourable to the country.

It is matter of concern for a developing country such as ours that the export sector is weak and the trade is unbalanced as a result of high pressure of import, former finance minister Mahesh Acharya says during a meet with rss reporter. As the income from the services sector is small and of temporary nature, the deficit in the current account of the country is increasing and the trade weakening.

According to him,  the only option for improving the economy of the country is the promotion and diversification of the export trade.

When the deficit of current account went on decreasing, Nepal should have increased domestic production and consolidated the export trade. But attempts were made to compensate for the deficit in the current  account through short-term foreign loan and investment.

Because of this wrong tendency, Nepal will be facing severe economic crisis one day. This is the reason for the foreign donor agencies and pointing fingers at our economic policy, leader of the Nepali Congress Sujata Koirala says.

The niger seed grown in Nepal is in demand in the usa, europe and Japan. Dairy products, tangerines, oranges, lemons, cardamoms, gingers and vegetables  are also in great demand in Bangladesh.

Statistics show that Nepal has been exporting niger seeds to these countries since the 70s. Rs 134.6 worth of the seed was exported to these countries in 1997-98.

In Nepal, about 500,000 ropanis of land are suitable for growing tea. If a 20-year masterplan is formulated for the cultivation of tea in a scientific manner, there is a possibility of exporting tea worth us dollar 2 billion in the next twenty years at the present prices.

National Planning Commission (npc) member Jagadish Chandra Pokharel says that private sector should be encouraged, banking sector and cooperatives motivated, and development of agriculture carried out in the form of a campaign.

Water is the main source of internal energy in Nepal. If this sector with a potential of 83,000 mw is harnessed, there is a possibility for the country to export power to India and Bangladesh and derive much benefit.

Likewise, handmade carpets, ready-made garments, hides and skins, oil, medicinal herbs, pulses, rice, handicrafts, wood and bamboo products, handmade paper and leather goods are some of the main exportable items of Nepal.