Good Afternoon & Namaste!

Transcription

1 Good Afternoon & Namaste!

2 Country Paper, Nepal UNESCAP Policy Dialogue on Economic and Transport Development in Border Areas in Eastern South Asia 4 Dec, 2013 Shillong (Meghalya), India

3 Nepal at Glance Location : 26⁰ 22' North to 30 ⁰ 27' North and 80⁰ 4' East to 88⁰ 12' East Area : 147,181 Square Km. Capital City : Kathmandu Population : million* Population Growth Rate : 1.4%* Currency : Nepalese Rupee Some World Heritage Sites : Lumbini (Birth place of Buddha) Chitwan National Park, Sagarmatha National Park, Pashupatinath, Swayambhunath, Bauddhanath, Changu Narayan, Kathmandu Durbar Square, Bhaktapur Durbar Square and Patan Durbar Square * Based on Population Census Report 2011, Central Bureau of Statistics (CBS). Sources: Central Bureau of Statistics

4 Main Economic Indicators of the Country Nepal is a developing country with relatively small Economy in South Asia. The Economic Indicators: Nominal GDP at Producers' Price US$ 15,582 mil. Total Consumption- US$ 14,028 mil. Gross Domestic Saving- US$ 1,554 mil. Per Capita Income US$ 658. Population below the povery line 23.8% 2.5 millions people are in foreign employment as of 2012.

5 Main Economic Indicators of the Country 800 thousand tourist visited Nepal in 2012/2013 India 20.6% China 8.9 % Sri Lanka 7.8 % USA 6.8 % UK 5.0 % Other Countries 50.9% ( Land Route used Tourist 25%)

6 Main Economic Indicators of the Country Economic growth in Nepal dipped to 3.6% in FY2013, with average inflation just under the double-digit mark. Political instability clouded the outlook in FY 2013 and remains the principal source of vulnerability going forward. The falling value of the rupee is significant, but unlikely to translate into full blown crisis.

7 Trade Balance 2012 (Amount in million US$) Country Export Import Trade Balance Afghanistan Bangladesh Bhutan China P. R India Maldives Pakistan Shree Lanka Total

8 Special Economic Zone Objective of establishing SEZ is to Provide special facilities and subsidies to industries established in such SEZs in order to aid in the social and financial growth of the country through industrialization and international trade.

9 Progress achieved to established SEZs 14 places are identified for establishing SEZ in border areas of the country. Physical infrastructures of SEZ construction has completed at Bhairahawa (Indian side border). Land have acquired in Paanchkhal (China side). Initial studies have carried out to established in Kakarvitta and Dhangadi. Extensive surveys have been carried out in Trishuli, Jumla and Biratnagar. Steps taken to transform the current industrial zone in Rajbiraj to a SEZ. However due to lack of Act SEZ is not in operation.

10 Location of SEZs

11 Border Crossing Points 17/12/

12 Border Crossing Points Roads along East to West sides- Mahendra highway- Completed with Asian Highway Standard) 1027 km from Kakarbhitta border to Mahendranagar border (AH2) Missing link at the west Mahendranagar (Nepal)- Banabasa (India), Government of India to define the missing link and to link with Asian highway standard. Postal Road- Being upgraded with Indian Assistance East to west parallel to the Nepal- India border points on the southern part of the country and link roads to the north side settlements from the borders Mid- Hill Highway 1707 km starts from Eastern Border at Chiyo Bhanjyang (Nepal) and Sikkim (India) passes through mid- hill cities and ends at Western Border Baitadi (Nepal) and Jhulaghat (India) Track opened, Upgrading works going on by the Government of Nepal with its own funding

13 Border Crossing Points Roads along South to North sides- Raxaul(India)- Birgunj (Nepal)- Hetaunda- Narayanghat- Kathmandu- Tatopani (China Border) AH42 Only one road linking South (India) and North (China) till now. Other 9 road corridors are defined feasible as northsouth cross border roads Raxaul(India)- Birgunj (Nepal)- Narayanghat- Galchhi- Trishuli- Rasuwagadhi (China) route has recently linked.

14 Trade and Transport Development for the border Crossings Half the third-country imports transit in containers by rail from Kolkata to Birgunj. The high-value goods imports in containers, it covers around 50% and the remaining 50% of third-county goods travel to Nepal by road in containers or as break-bulk. The total containerised tonnage arriving by rail is about 190,000 tonnes (a quarter of the total tonnage arriving at Birgunj of 750,000 and arriving in the form of 20,000 TEU per annum). Approximately 5% of third-county containers arriving by rail at Raxaul originate from Chittagong.

15 Trade and Transport Development for the border Crossings The distance from Kolkata to Birgunj is 704 km and between Haldia and Birgunj, 832km. The train path is controlled by Indian Railways and the container haulage operation is Concord. Paths are given to the freight trains, but there is no predetermined schedule of service and is restricted by Indian scheduled services.. Journey time on the railway is about four days on average (the range of transit days from ship to Birgunj ICD varies from 2 to 16 days.)

16 Trade and Transport Development for the border Crossings After clearing customs at Birgunj, the Full Container Load (FCL) containers may depart directly to their destination. The Less than Container Load (LCL) containers are de-stuffed at or generally near Birgunj ICD/Dry Port. Indian Railways is required by agreement to unload the containers on the rake in 8 to 12 hours and this is achieved using modern reach stackers (there are no rail mounted gantry cranes)

17 Current Border Crossing Arrangements and Procedures Domestic Rules Governing Trade Export Import Control Act-1958 Export Import Control regulation 1974 Gazette Notifications of October Customs Act 2006 and Regulations Private Firm Registration Act, Company Act, Plant Protection Act, Food Act, Animal Health and Livestock Services Act Standard Measurement and Weight Act, 1969.

18 Current Border Crossing Arrangements and Procedures Domestic Rules Governing Trade Quarantine Act and Regulations. Narcotics Drug Control Act, Patent, Design and Trademark Act, Consumer Protection Act, 1998 and Regulations Industrial Enterprises Act, Foreign Investment and Technology Transfer Act, Trade Policy, Industrial Policy, Nepal Trade Integration Strategy, Various Acts and Legislations governing services like education, health, accounting, tourism and professional services.

19 Current Border Crossing Arrangements and Procedures International Rules Unilateral preferences available under GSP and zero tariff Preferences by the developing and developed countries. Bilateral arrangement. Nepal India Trade secretary level mechanism(igc) and Joint secretary level mechanism(igsc) Treaties:- Trade treaty, Transit Treaty, Control of unauthorised Trade and Rail Service Agreement. Regional trade agreements of SAFTA and BIMSTEC FTA. WTO rules and obligations.

20 Facilities at the Borders At the border there are two distinct border facilities, these being 27 traditional border post located on the historic crossing points between India and Nepal, and five Inland Clearance Depots (ICDs) at: Birgunj (rail only facility, India); Biratnagar (road, India); Bhairahawa (road, India); Kakadbhitta (road, India); and Tatopani (road, China). Feasibility study has been done for the construction of dry port in Sharalahi, Rajbiraj, Gaur and Maheshpur Customs. Integrated check post construction in Birantagar, Birgunj, Nepalgunj and Bhairawa customs under process.

21 Major Challenges Establishing an efficient, integrated and harmonized transit transport system in south Asia Designation of fixed transit transport routes and provision of necessary facilities Harmonization of rules, regulations and procedures for goods and vehicles, including customs procedure. Simplifying and harmonizing transport, trade and customs regulations and requirements for the purpose of facilitation of goods in transit Provision of multimodal transport facility Linking ICDs with railway line Enhance and strengthening quarantine mechanism for its recognition

22 Major Challenges Effective risk management system Effective dispute settlement system Special provisions for the transportation of time-sensitive goods such as drugs and perishable goods. Investment in infrastructure hardware as well as software Quality of roads and railways gauge compatibility

23 Thanks for your kind attention!