According to government data, trade in FWR was worth Rs 5.88 billion out of the country´s total foreign trade worth Rs 462 billion during the year.[break]
Worse, imports in FWR are increasing whereas exports from here are declining over the years. The most backward region´s contribution in the country´s total exports was only 0.59 percent, amounting to Rs 226.85 million during the year 2010/11. Its share stood at 0.59 percent and 1.71 percent at Rs 35.58 billion and Rs 1.17 billion during the years 2009/10 and 2008/09, respectively.
However, imports in the region jumped to Rs 5.65 billion or 1.42 percent of the total import worth Rs 397.53 billion during the review year. FWR contributed 1.2 percent and 0.28 percent at Rs 4.49 billion and Rs 6.75 billion in the total import during the years 2009/10 and 2008/09, respectively.
Entrepreneurs attributed nominal contribution of FWR in the country´s total trade to poor industrial infrastructure and absence of well-equipped customs points.
“Limited number of industries in the region despite huge potential of promoting local products and insufficient infrastructure of customs points linking Nepali bordering town with Indian towns are some of the stumbling blocks to the development of trade in FWR,” Dinesh Bhandary, president of Kailali Chamber of Commerce and Industry (KCCI), told Republica on Saturday.
He blamed the government apathy to establish Special Economic Zone (SEZ) - an industrial area in which different incentives are provided to entrepreneurs by the government - and absence of quarantine check-posts as well as poor infrastructure of customs points for FWR´s poor contribution in the country´s trade.
He said forest products such as medicinal plants, allo and agro products are major items that FWR can export.
“Poor infrastructure in Tikapur, Dhangadi, Kanchanpur, Darchula customs has forced most local traders to use Nepalgunj customs for export and import of goods,” said Bhandary.
Though import is increasing in the region, the volume is still nominal as the region lacks major importers and authorized dealers of overseas products. Keeping in view the huge potential and lack of industrial and trade infrastructure in the region, the government has announced to build a dry port in Dodhara-Chandani area to boost trade from the region.
Meanwhile, KCCI has on Saturday requested the visiting Finance Minister Barsh Man Pun and Commerce Minister Lekha Raj Bhatta for necessary support in building the trade infrastructure in the region.
However, Eastern Development Region (EDR) and Central Development Region (CDR) are still dominant regions in Nepal´s foreign trade with their contribution at over 91 percent of the total export and 83 percent in total import of goods. According to government data, contribution of Eastern Development Region (EDR) and Central Development Region (CDR) stand at 47.83 percent and 44.72 percent in the total export during 2010/11.
Similarly, exports from Western Development Region (WDR) and Mid-Western Development Region (MWDR) accounted for 4.81 percent and 2.28 percent of the total exports from the country. Likewise, contribution of EDR and CDR in overall import stood at 13.81 percent and 68.49 percent respectively.
Similarly, WDR and MWDR´s share was 13.86 percent and 2.42 percent respectively in the country´s total import.
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