Kathmandu. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has stressed the need for investment in physical infrastructure to boost trade between BBIN countries.

He was speaking at a programme on Logistics Development and BBIN Connectivity of Nepal organized by Nepal Freight Forwards Association on the occasion of the 31st Cargo Day.

He expressed the belief that proper development of physical, institutional and regional infrastructures would contribute significantly to trade and economic growth. “Physical, institutional and regional infrastructure development will support the overall economic growth,” he said, adding that road, rail, airport and warehouse infrastructure in Nepal are still inadequate. Logistics hubs are needed, especially at border points and main trade routes. ”

He said that the development of logistics would play an important role in increasing Nepal’s exports and attracting foreign investment.

Dhakal said that effective and digital logistics system would reduce the cost of businesses and industries and build affordable supply chains. He also stressed the importance of maritime access for a landlocked country like Nepal. Stating that the private sector has 100 per cent investment in the transport and transportation sector, he said the government should pay special attention for the development of this sector.

He also said that the private sector is ready to work according to the public-private partnership model for this.

Dhakal said that the value added tax imposed on the transport service has affected the transport service and the consumers have to pay high prices due to the increase in the price of goods, adding that it is a risk of reducing Nepal’s export trade and increasing trade deficit.

Complaining that there were problems in the implementation of the amendments made in the government’s laws, the provisions mentioned in the budget and some of the issues to be addressed by the monetary policy, he urged the government to work with confidence.