Though Nepal and India had failed to renew the transit treaty between both countries, experts and entrepreneurs at a discussion programme have said that the Indo-Nepal Transit Treaty should be renewed without any ambiguities.

The transit treaty between Nepal and India expired on the first week of January.

However, the meeting of the joint-secretaries of both the countries held in New Delhi in the first week of january has extended the treaty for three more months only instead of renewing it for the next seven years.

Speaking at the programme, Surendra Bir Malakar, acting president of Nepal Chamber of Commerce (NCC) said, “a cloud of uncertainty hovers over Nepali businesses with the treaty only being extended for three more months.”

“When there were no obligations from either side, it should have been automatically renewed for the next seven year term,” he said adding that the Indian government is positive towards the treaty but the state governments have raised questions over the issue of renewal.

Chandi Raj Dhakal, president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) said that foreign investors are now hesitant to invest in Nepal as the treaty will expire in next three months and the renewal remains in uncertainty.

Nepal should reap the benefit of being located between the two economically growing titans of Asia. “If Nepal could be developed as a transit point between these two economic giants, then there lies chances that our indigenous products would get promotion,” he said.

The meeting between Nepalese and Indian officials failed to renew the treaty and extended it for three months after Indian side said they needed time to study and review the treaty in accordance with its provisions.

The two countries, which share an open border and 15 transit points, had in January 5, 1999 signed the India-Nepal transit treaty, valid for seven years, to facilitate administration and prevent cross-border crime and smuggling.