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Trade and Transport Consultant and Past President, Nepal Freight Forwarders Association

Nepal stands at a critical juncture. As a landlocked, least developed country that conducts almost all of its third country trade through India under the Nepal India Trade and Transit Treaty, our competitiveness depends not only on domestic policies and physical infrastructure but also on the digital connectivity of our trade systems. Yet Nepal continues to rely heavily on paper based verification, manual customs procedures and fragmented digital initiatives that do not function as a genuinely connected end to end system.

This is no longer merely a question of administrative modernization. It is a question of Nepal’s economic survival and international relevance. Countries that trade faster, more transparently and at lower cost will attract investment, integrate into regional value chains and create opportunities for their businesses. Countries that remain trapped in outdated procedures will see their exporters lose markets, their importers face higher costs and their economy fall further behind.

Paperless trade means the electronic exchange and legal recognition of documents such as certificates of origin, commercial invoices, customs declarations, bills of lading and transit documents. It reduces duplication, limits opportunities for informal payments and creates a reliable digital record of every transaction.

When customs officials and traders must repeatedly examine the same shipment through paper documents at different checkpoints, the possibility of delays, inconsistent decisions, forged documents and mismatched declarations increases. By contrast, electronic systems can validate information at its source and transmit it securely to the next agency without alteration. This improves transparency because all parties see the same information, predictability because procedures and timelines become more consistent, and accountability because every transaction leaves a digital audit trail.

For Nepal’s small and medium sized enterprises, these benefits are especially important. Large companies may be able to absorb delays by maintaining additional inventories, employing specialized staff or paying for complex compliance systems. Small traders and exporters cannot. Every unnecessary form, border delay and unpredictable inspection adds to their costs and weakens their ability to compete.

Nepal has made progress, but the country has not yet built a fully integrated paperless trading environment. Certificates of origin may be issued digitally in some cases, but hard copies with signatures and seals can still be required. Earlier assessments have also identified the need to complete the legal, institutional and technical foundations for cross-border electronic data exchange. The Nepal National Single Window, launched in 2021, still operates alongside paper based submissions for many transactions, which means that its full potential has not yet been realized.

Several critical gaps remain. Nepal lacks systematic national adoption of ICC Incoterms, leaving the allocation of cost, risk and responsibility between buyers and sellers open to inconsistent interpretation. The Electronic Transactions Act does not yet provide sufficiently clear legal equivalence for all trade related electronic documents. Customs procedures also need to become more predictable and risk based. Nepal needs wider use of advance rulings, a functioning Authorized Economic Operator program, stronger coordination among line agencies and mutual recognition arrangements with trading partners.

A live cross-border electronic data exchange system is also essential. A feasibility study, by itself, cannot deliver the efficiency that Nepal’s traders need. Nepal has already committed to trade facilitation reforms, including customs modernization and the development of web based paperless clearance systems. However, implementation must move beyond plans and pilots. The country now needs measurable results at border points, in government offices and inside the businesses that actually use the system.

The experience of Lao PDR offers Nepal an important lesson. Lao PDR is also landlocked and has faced many of the same challenges associated with limited infrastructure, a small domestic market and dependence on neighboring countries for transit. Yet it has moved forward by strengthening its electronic transactions framework, developing a national single window and participating in the exchange of electronic certificates of origin through ASEAN mechanisms.

The comparison should not discourage Nepal. It should remove the excuse for delay. Lao PDR did not wait until every institution, law and technology platform was perfect. It established a coordinating mechanism, set measurable targets and began implementation while continuing to improve the system.

Nepal’s challenge is more foundational. It must strengthen legal recognition of electronic documents, make the National Single Window genuinely functional, establish cross-border data exchange, introduce an effective Authorized Economic Operator program and improve digital literacy among small and medium sized enterprises. These tasks are demanding, but they are not beyond Nepal’s capacity.

The real obstacle is not a lack of technology. It is a lack of institutional urgency and political ownership. Nepal has development partners, capable professionals, a private sector that understands the need for reform and India as a critical transit and trading partner. What is missing is the decision to bring these resources together under a clear and accountable national program.

The global trading environment is changing rapidly. Supply chains are being reorganized, regional production networks are expanding and businesses increasingly expect customs and logistics information to move as quickly as the goods themselves. In this environment, Nepal cannot expect to attract investment or expand exports while its documents move slowly, its agencies work in isolation and traders must repeatedly submit information that the government already possesses.

Connectivity should not be understood only as roads, railways, dry ports and transmission lines. The future of trade will also depend on digital connectivity. A modern highway can shorten the physical journey of a shipment, but a paper based bureaucracy can still keep that shipment waiting for days. Nepal therefore needs both physical and digital corridors. Without digital connectivity, our transport infrastructure will not deliver its full economic value.

Delaying reform also carries a hidden cost. Every year of inaction means lost export opportunities, higher logistics expenses, reduced government efficiency and greater frustration among businesses. It means that Nepali products reach regional and international markets later and at a higher price than competing products. In many cases, that difference determines whether an order is won or lost.

Nepal must also recognize that regional integration will not happen automatically. India, Bangladesh, China and other countries are improving their trade and logistics systems. If Nepal does not connect its procedures with those of its neighbors, our traders will remain outside the most important regional supply chains. We cannot ask the region to wait for Nepal to become ready. We must begin the process now and build readiness through participation.

Nepal should therefore adopt a national action plan with clear responsibilities, deadlines and measurable targets. The National Trade Facilitation Committee needs sufficient authority to coordinate ministries, customs, border agencies, banks and private sector institutions. The government should publish a roadmap for cross-border paperless trade, specifying how many agencies, documents and border points will be digitized and by when.

The legal framework for electronic trade documents, electronic signatures, electronic payments and the mutual recognition of digital records must be strengthened. The National Single Window should become genuinely interoperable, allowing traders to submit information once and enabling authorized agencies to access it securely. Nepal should also begin pilot cross-border electronic data exchange with India and other willing partners instead of waiting for a complete system to be built nationwide.

At the same time, the government should establish a credible Authorized Economic Operator program based on international standards. Risk based customs inspection and advance rulings should be expanded so that compliant traders receive faster and more predictable clearance. Small and medium sized enterprises, freight forwarders, customs brokers and transport operators should receive affordable training and practical digital support.

The government must also publish performance indicators covering clearance times, document requirements, agency integration and the percentage of transactions completed electronically. Reform should be measured by what happens to an actual shipment, not by the number of meetings held or policy documents prepared.

These reforms should be implemented in parallel. Nepal cannot afford to complete one layer and then wait years before beginning the next. Legal reform, institutional coordination, technical integration and private sector training must advance together.

The choice before Nepal is clear. We can continue to discuss digital trade connectivity through committees, studies and pilot projects, or we can make it a national economic priority and begin implementation with urgency.

Paperless trade will not solve every problem in Nepal’s trade sector. It will not replace roads, railways, warehouses or efficient border infrastructure. But without it, those investments will produce only limited results. A shipment may travel on a new road, but if its documents remain trapped in offices, the border will continue to function as a bottleneck.

Nepal’s future cannot be secured by remaining a passive transit user between larger economies. We must become an active participant in regional and international trade networks. That requires faster procedures, trusted institutions, compatible digital systems and the confidence to connect with the region before every internal weakness has been eliminated.

The strongest message Nepal can send to investors, trading partners and its own business community is that the country is ready to compete. That message will not be delivered by another policy document. It will be delivered when a trader can submit information once, when agencies exchange data securely, when a compliant shipment crosses the border without unnecessary delay and when Nepali businesses can participate in international supply chains on equal terms. Nepal has the partners, the expertise and the opportunity. What it needs now is political determination. The country must stop treating paperless trade as a future aspiration and start treating it as an immediate national necessity. Every year of delay weakens Nepal’s position. Every year of action strengthens its connection to the region and opens a wider path to international trade.

The author is Secretary General of the Nepal India Chambers of Commerce and Industry

Nestled between India and China, Nepal possesses a unique and complex trade history, along with significant market opportunities. However, the country faces multiple constraints—including geographical challenges, weak infrastructure, procedural bottlenecks, and an often unstable political-economic environment. Moreover, the government’s approach to trade negotiations tends to be reactive, shaped by perceived contexts rather than long-term strategy. In this light, it is essential to institutionalise effective standard operating procedures (SOPs) for trade negotiations. Such SOPs would ensure consistency, enhance transparency, and provide strategic direction across bilateral, subregional, and regional trade engagements.

The need for an SOP

Nepal’s trade diplomacy currently relies heavily on ad hoc arrangements and the personal experience of individual bureaucrats. This knowledge-driven, personality-based approach often leads to inconsistencies, a lack of institutional memory, and missed opportunities on bilateral, regional, and multilateral platforms.

A national SOP would promote coherence across government departments and ensure continuity during political transitions. It would also empower negotiation teams with procedural clarity and sectoral insights while presenting Nepal as a prepared and credible counterpart in international forums.

Core SOP features for trade negotiations

Institutional mechanisms

Since the Ministry of Industry, Commerce and Supplies (MoICS) leads trade negotiations, it should initiate the formation of a formal negotiation coordination committee. This body should include representatives from the Ministry of Foreign Affairs, Ministry of Finance, Ministry of Agriculture, private sector associations, academia, legal experts, and provincial authorities. Together, they would set national priorities, vet negotiation positions, and guide strategies.

SOP cycle

Pre-negotiation phase: Conduct data-driven impact assessments, define national priorities, consult relevant stakeholders, and prepare position papers.

Negotiation phase: Select delegation members, assign roles, and maintain real-time internal coordination.

Post-negotiation phase: Identify legal provisions, outline ratification processes, create implementation roadmaps, and establish monitoring indicators.

Sectoral working group

A specialised group should bring together representatives from transit service providers, agriculture, digital trade, transport logistics, and quality assurance sectors to provide technical expertise. Key issues should include Nepal’s transit rights and infrastructure cooperation. The SOP must prioritise multimodal transport corridors, efficient cross-border logistics, and enhanced trade facilitation through modernised customs systems and logistics hubs.

Trade facilitation

Efforts should focus on easing the movement of people, goods, services, capital, and data—while remaining mindful of risks associated with automation and digitalisation. Nepal must align with the WTO Trade Facilitation Agreement and leverage regional initiatives such as BBIN, BIMSTEC, SAARC, SASEC, and the Belt and Road Initiative (BRI).

To support this, a negotiation readiness toolkit is needed. This should include templates, records of past negotiations, sectoral briefings, simulation exercises, and case studies. Trade facilitation measures must align with the Sustainable Development Goals (SDGs) and be benchmarked accordingly.

Establishing bodies such as a National Trade Negotiation Council (NTNC), a National Trade Consulting Forum, or a Trade Intelligence and Analysis Unit is crucial for institutional continuity and informed decision-making.

Infrastructure development—including rail, road, and inland waterway connectivity—must be a priority. Logistical alignment, mutual recognition of standards and certifications, and the promotion of low-carbon, climate-smart trade chains should drive Nepal’s trade agenda.

Legal and risk mitigation

Trade agreements must include robust provisions for dispute resolution, force majeure, and other legal safeguards. It is vital to protect the interests of small producers, uphold environmental standards, and ensure policy space for future reforms.

Inclusion and capacity building

An inclusive trade negotiation process must involve wide consultations with the private sector, civil society, and marginalised communities. The SOP should ensure that all relevant stakeholders are engaged meaningfully.

Capacity building is essential. Members of the negotiation team must receive training in legal interpretation, economic analysis, negotiation tactics, and language skills. Ongoing collaboration with think tanks and trade institutions will enhance capacity and knowledge.

Meeting key performance indicators (KOIs) and conducting annual performance reviews by independent experts will help ensure the negotiation team’s effectiveness and accountability.

Conclusion

Institutionalising SOPs for trade negotiations through a phased, strategic approach is crucial for Nepal. This process should be backed by technical and financial support, and ensure coherence between national development plans and regional trade commitments. Effective monitoring and evaluation must be embedded to achieve desired trade outcomes and social impact.

Nepal should not view its position between two dominant economic powers as a limitation, but a strategic opportunity. By transitioning from a reactive player to a proactive influencer in regional and global trade, Nepal can better serve its national interests. Now is the time to establish a negotiation process that is strategic, inclusive, and driven by national priorities—one that enables Nepal to negotiate with confidence, not just consent.

In the face of global trade uncertainties, Nepal must proactively adapt to geopolitical shifts while diversifying its economic partnerships. Strengthening regional ties, investing in domestic industries, leveraging supply chain shifts, and prioritizing digital transformation will be key to sustaining economic growth and reducing external dependencies. A well-calibrated trade strategy, backed by strong governance and infrastructure development, can enable Nepal to navigate the evolving global trade landscape with confidence.

Adapting to geopolitical realities

Nepal should reduce dependence on major powers like the US and China by expanding trade partnerships within South Asia and beyond. Strengthening economic ties with regional and interregional platforms such as BBIN, SAARC, BIMSTEC, ASEAN, IORA, and the African Union can provide alternative markets and enhance economic resilience. Additionally, closer engagement with EU agencies and Middle Eastern economies can help diversify Nepal’s trade and investment sources.

However, deepening foreign trade relations demands strong governance and accountability. Nepal must implement stricter scrutiny on foreign aid to ensure effective fund utilization, while also building trust with international donors.

Overcoming institutional challenges

A major roadblock to regional trade integration is bureaucratic inertia and political unwillingness to implement complex initiatives. Keay challenges include:

• Limited political commitment to advancing regional economic cooperation.
• Under-resourced institutions that lack the capacity to negotiate and implement effective trade policies.
• A shortage of skilled professionals with expertise in international trade and economics.

To overcome these obstacles, Nepal must prioritize institutional reforms and invest in building a capable workforce equipped to navigate the intricacies of global trade.

Solution: Invest in human capital

Nepal must empower its workforce with skills in IT, AI, and fintech to make the economy more adaptable to global shifts. Skilled labor will be a critical factor in leveraging the ongoing supply chain shifts from China to South Asia, where Nepal can benefit through IT outsourcing and low-cost manufacturing.

Diversification and self-sufficiency

To strengthen its economic base, Nepal must focus on domestic revenue generation. Key strategies include:

• Taxation reforms to enhance revenue collection and reduce reliance on foreign aid.
• Industrial growth and public-private partnerships (PPPs) to boost productivity and innovation.
• Regulatory simplification to eliminate bureaucratic red tape and foster a business-friendly environment.
• Digitization of trade and business processes to minimize corruption and improve efficiency.

Strengthening domestic industries

Nepal must reduce reliance on imports by fostering growth in agriculture, manufacturing, and services. Instead of exporting raw materials, Nepal should develop processing and manufacturing capabilities to create value-added products. Agro-based, herbal, natural fiber, and bamboo industries hold significant potential to generate employment and exports.

FDI and trade policy reforms

To attract FDI, Nepal should offer incentives in manufacturing, energy, and technology sectors. Simultaneously, tracking global trade policies—especially tariffs imposed by the US on China, the EU, and India—can help Nepal identify trade opportunities and capitalize on shifting market dynamics. Key considerations include:

• Analyzing how global firms and markets are adjusting to US tariffs and leveraging these shifts to Nepal’s advantage.
• Assessing the impact of rising consumer costs in the US and negotiating preferential market access for Nepali products.
• Capitalizing on the supply chain shift from China, which is expected to redirect five percent of global production to South Asia. Nepal can position itself as a hub for IT services and cost-effective manufacturing, provided it reforms labor laws to ensure fair wages and job security.
• Rather than pursuing retaliatory trade measures, Nepal should adopt a strategic diplomatic approach, negotiating preferential market access while quietly building trade capabilities.

Infrastructure and trade facilitation

The government must focus on policy reforms, trade facilitation, and accreditation to ensure that Nepali products meet international standards. Key infrastructure investments include:

• Developing transshipment ports to enhance access to international markets.
• Strengthening logistics and port-road connectivity to reduce trade bottlenecks.
• Enhancing trade-related services to streamline export and import processes.

Nepal must also maximize economic diplomacy by leveraging the Hub and Spoke Mission approach. Appointing trade specialists and improving foreign policy foresight and scenario planning within the Ministry of Foreign Affairs can strengthen Nepal’s position in international trade negotiations.

Conclusion

Given the shifting geopolitical landscape and evolving US trade policies, Nepal must tread carefully to safeguard its trade interests. The US’s increasing reliance on tariffs and sanctions as economic tools, along with rising tensions between major global economies, calls for a strategic and diversified approach in Nepal’s trade policies. To strengthen resilience, Nepal must focus on regional cooperation, trade diversification, and digital transformation while ensuring robust governance and policy reforms.

Nepal, a landlocked country situated between India and China, faces unique challenges due to its geographical location and rugged topography. The nation’s landscape is characterized by three distinct regions: the high Himalayan Mountains in the north, the mid-hill regions and the southern plains (Tarai). These diverse terrains pose significant logistical challenges for domestic distribution and access to international markets. With over 80 percent of its population residing in rural areas and dependent on agriculture, Nepal’s economic growth hinges on improving infrastructure to facilitate connectivity, trade and development. 

Despite these challenges, Nepal’s strategic position as a bridge between two of the world’s largest economies offers immense potential for growth. To harness this potential, public-private partnerships (PPPs) are critical in addressing infrastructure gaps and enhancing the logistics sector. 

Below are actionable policy guidelines for establishing an effective PPP framework:

Institutional framework 

A dedicated PPP unit: The government must set up a dedicated PPP unit or agency to oversee project implementation, provide technical support and standardize logistical practices for logistics service providers. This unit will coordinate provincial and national transport initiatives to ensure harmonization and efficiency. 

Legal and regulatory environment: Introducing PPP-specific legislation is essential to define clear frameworks for contract enforcement, risk-sharing and dispute resolution. These laws will provide confidence to private investors and international donors. 

Decentralization: An empowering provincial government is key to managing localized PPP projects. Each province should focus on developing infrastructure tailored to its production centers, whether for manufacturing or agriculture. This includes establishing and investing in transport hubs, warehouses, and equipment suited to the geographical terrain, such as all-weather roads and specialized vehicles for mountain regions.

Project selection and prioritization 

Feasibility studies: Conducting rigorous feasibility studies is vital to prioritize infrastructure projects such as roads, railways, airports and multimodal connectivity. The studies should consider environmental, technical and financial aspects to ensure sustainability. Key projects should include centralized logistics hubs in major cities like Kathmandu, Birgunj, Biratnagar, Kakarvitta and Bhairahawa, with efficient links to border points for customs and warehousing. 

Alignment with national goals: PPP projects should align with national plans, such as Nepal’s five-year plans, focusing on reducing isolation of remote areas, improving trade and promoting economic growth through efficient distribution of goods and services.

Risk allocation and management 

Risk-sharing mechanisms: Clear guidelines for risk-sharing between public and private sectors are crucial, particularly given Nepal’s susceptibility to natural disasters like landslides, floods and earthquakes. 

Utilization of resources: The government should leverage public land for long-term leases and offer financial guarantees for projects that may not be immediately profitable but have high social and economic value. Blended financing models combining public, private and donor investments can provide the necessary funding and technical assistance. 

Capacity-building: Investing in capacity-building is crucial for both government officials and local communities. Train government personnel in PPP project design, negotiation and management. Provide employment and training opportunities to local populations to ensure inclusivity and skill development. Engage communities, NGOs, and private sector stakeholders in decision-making to foster trust and collaboration.

Technology and innovation 

Renewable energy solutions: Focus on small-scale hydro, solar and wind energy projects to power remote areas and reduce dependency on non-renewable resources. 

ICT and digital connectivity: Develop digital solutions to bridge connectivity gaps, such as internet access and e-commerce platforms for rural communities. 

Resilient engineering: Adopt innovative engineering solutions such as modular bridge systems and climate-resilient road designs to overcome geographic and climatic challenges.

Environmental and social sustainability

Environmental safeguards: Ensure regular environmental impact assessments (EIAs) to mitigate risks to the ecosystem during infrastructure development. 

Community benefits: Design projects to deliver tangible benefits, such as improved market access, healthcare and education for remote populations. 

Green logistics: Promote eco-friendly technologies like electric trucks, solar-powered warehouses and sustainable building materials.

Digital platforms

Develop a central digital platform for data collection, goods tracking and information sharing among stakeholders. Enable real-time updates on traffic, warehouse capacities and customs clearance to improve efficiency. Introduce e-payment systems for tolls, customs and other fees to reduce inefficiencies.

Cross-border trade facilitation

Given Nepal’s dependency on its transit neighbors, harmonizing customs procedures with India and China is critical. Collaborate on reducing delays at border points, such as Birgunj-Raxaul in the south and the Rasuwagadhi-Kerung crossing in the north.

Monitoring and evaluation

Transparent and robust monitoring mechanisms are essential for PPP success. Define key performance indicators such as reduced transport costs, increased trade volumes and time savings. Engage independent bodies for audits and evaluations. Ensure transparency through public disclosure of contracts, progress reports and financial data.

Conclusion

Nepal’s landlocked status and challenging terrain may appear to hinder its development prospects, but they also offer opportunities for innovation and collaboration. Developing a well-structured PPP framework can bridge infrastructure gaps, enhance logistics and connect Nepal’s remote regions with domestic and international markets. 

By implementing these policy guidelines, Nepal can unlock its potential as a trade hub, fostering sustainable economic growth and improving the quality of life for its citizens.

To promote the flow of vehicular traffic between member-states, the Bangladesh, Bhutan, India, and Nepal (BBIN) Motor Vehicle Agreement (MVA) was signed in 2015. Although experts had hoped to stimulate an increase in commercial and personal vehicular traffic across borders, it failed to make any noteworthy impact. 

So, what went wrong?

Despite various studies and stakeholder consultancies conducted by donor agencies like the World Bank and Asian Development Bank, the initiative failed to achieve anything significant. Bhutan ultimately backed out of the agreement, fearing possible displacement of local MSMEs in the trucking industry, endeavoring to fight for its small business owners. They also cited environmental concerns as another prime reason behind the move even as Bangladesh pushed on, developing a fruitful trade relationship with India. India has been asking Nepal to revisit the transit and bilateral agreement, but the latter seems unsure how to go about it.

ADB attempted to assist Nepali ministries by drafting suitable protocols and advocating cooperation between them and observed that the Ministry of Industry, Commerce and Supplies (MoICS), and the Foreign Ministry needed to cooperate better with the Ministry of Physical Infrastructure and Transport (MoPIT). General opinion among related personnel is that the MoICS should have precedent over matters related to bilateral and regional agreements, and that MoPIT was erroneously designated authority over these matters. This atmosphere of resentment failed to forge the collective political will necessary to motivate the ministries to cooperate and coordinate.

Recent studies on the transport industry of Bhutan and Nepal show that donor agencies attempt to woo and advocate only to higher-level stakeholders by disregarding stakeholders at the ground level and leaving the gap in their understanding unaddressed. This allows us to understand what went “wrong”: Being influenced by wrong examples of the tracking and tracing of end-to-end movements along the logistic chain and wrong advocacy with wrong stakeholders resulted in the pitfalls experienced. 

So, the way forward should be to begin from the ground level to raise awareness among stakeholders, and I believe that following steps can “grease the wheels” to make a real difference.

Firstly, various members of the government need to collectively decide on the appropriate ministry responsible, which will then implement a ground-up stakeholder consultancy approach. This approach should be informed by the expertise of relevant logistics actors and at least inform, if not incorporate, donor agencies to prevent redundancies and confusion among stakeholders. Donor agencies and relevant Nepali ministries should cultivate amicable working relationships to generate a collective political will that appropriately advocates for the modality so that all member-states understand how it might be mutually beneficial to them.

Secondly, undertaking several trade-related activities along highways to benefit citizens living close to them while addressing businesses/entrepreneurs, social safeguards, climate change, gender, disability issues and disaster prevention will help them adapt to the new economic ecosystem and better understand and enhance their monetary potential.

The benefits of carrying out local outreach in conjunction with BBIN MVA are manifold and have the potential to make a significant impact at the grassroots. At local marketplaces along highways connecting member-states, citizens can sell their goods and services, promoting economic opportunities for local businesses and entrepreneurs if they are provided support in identifying the nature of business, communicating policies and regulations as well as standards, or even providing suggestions to aspiring businesspeople and linking them to real traders (retailers, wholesalers, et cetera.)

Skill development centers along highways will provide training and employment opportunities for residents, including vocational training in trades such as driving, mechanics, carpentry, agriculture and hospitality.

Health and safety protocols will help protect workers and residents from accidents, occupational hazards, and exposure to pollutants during road construction. Placing disaster preparedness and response centers along highways with emergency supplies, communication systems, and trained personnel will ensure swift and effective responses to road accidents, landslides, floods and other disasters.

Community resilience techniques offered to communities along highways will provide knowledge to residents on disaster preparedness, risk reduction strategies and response, empowering them to take proactive measures to protect themselves and their communities by engaging with local communities, indigenous groups, and other stakeholders throughout the road construction process to solicit their input, address concerns, and ensure transparency and accountability.

Providing gender-inclusive business support services along highways, including access to finance, training and mentorship programs tailored to the specific needs of women entrepreneurs and specific business owners will foster an environment of economic agency and inclusiveness.

The social safety aspect is crucial, and it should include implementation of social safety nets and support programs for vulnerable populations living close to highways, including access to healthcare, education, housing, and social assistance. By integrating these social safety nets along trade routes, stakeholders can minimize adverse social impacts, enhance community resilience and promote sustainable development in the areas affected by natural calamities. Each of these methods has advantages, challenges, and potential applications depending on various factors like population density, type of topography and industries around the community. Introducing technologies that help with environmental impact mitigation and help reduce greenhouse gas emissions will increase awareness and ensure greater accessibility to mitigate climate change.

Generating tourism in Bhutan, Nepal and Bangladesh by encouraging community-based tourism initiatives along highways, where residents can offer homestays, guided tours, and cultural experiences, generating income while preserving and showcasing local traditions and heritage will be yet another way to help drive economic and social progress. Green infrastructure projects along highways, such as tree planting, rain gardens and natural drainage systems, mitigate climate change impacts, enhance biodiversity and improve resilience to disasters like floods and landslides.

We can achieve these benefits by implementing BBIN MVA, especially to support MSMEs by providing and linking activities under different trade infrastructure along with construction of roads and other trade-related infrastructure. Connectivity through different means and modes of transport like inland waterways and trains can further enhance the economy of the BBIN initiative by connecting trade and social issues for a better livelihood.

The author is trade consultant and advisor at Nepal Freight Forwarders Association. Views are personal

Emotional intelligence (EI) is connected to quality improvement or performance enhancement through attachments with employees by perceiving their feelings and empathizing for more effective and efficient outcomes. It shapes their ideas about philosophy and the nature of existence. It builds relationships, provides emotional support, and helps understand unique learning needs of the human brain. 

EI skills enable us to strengthen social bonds and connect with others through critical and ethical thinking by using added energy and creativity.

Combining learning or teaching methodology with emotional intelligence is not easy, but with right planning and approach, it can help create a sustainable learning environment.

EI is about developing self-awareness to recognize one's own emotions . To be able to adapt to self awareness and stay motivated, regular help from teachers as well as devotion from students is a must. Regulating self is not easy as it involves effective managing of emotions by being goal-oriented and avoiding distractions. 

The development of the capacity to empathize with others and understand peers and teachers will enhance the communication skills as well as develop social skills and improve motivation towards positive attitude to achieve the set goals. Something very crucial in the process is the management of negative feelings that keep flowing during the process which is unavoidable. To have the capacity to manage these negative feelings is critical, as it is related to ‘yoga’ or control of mind and body which helps in assessing emotions.

Based on the above background related to EI and the soft skills needed to harness the capacity of individuals or firms, it can be concluded that product enhancement teachings, skill development, quality improvement, innovation, capacity building and techniques like customers relationship management, Lean, JIT, TQP, etc. cannot succeed until we are able to master the soft skills related to emotional intelligence. 

EI involves understanding and managing emotions for quality improvement efforts and effective teamwork. It helps build strong working relationships, resolve conflicts, and promote collaboration among team members. Here is how EI can help meet your organizational goals by fostering a healthy team collaboration:

• EI helps to develop effective communication which is a cornerstone for enhancing performances. Individuals with high EI are generally skilled communicators, as they can convey ideas clearly, listen actively, and provide constructive feedback, enabling smoother project implementation and better results.

• Process changing is a difficult activity in an organization and needs much understanding of the employees and employers mindset. High EI enables better management of the resistance to change by considering the emotional impact of change on employees or the organization as a whole. It can address concerns empathetically and guide the team through transition more effectively.

• Leaders with high EI can inspire and motivate their teams, creating a positive and supportive work environment that fosters innovation and continuous improvement.

• Conflicts are unavoidable in the process of change management efforts , especially when changes disrupt established routine work. EI helps individuals handle conflicts constructively, finding win-win solutions and preventing conflicts and helps derailing improvement efforts.

• EI is essential for understanding customer needs and preferences. Emotionally intelligent individuals are better at empathizing with customers, leading to better products/ services meeting customer’s wants and desires and at times exceeding customers expectations.

• It is important to improve quality through constant feedback for critical adjustments and achieve progress. Emotionally intelligent individuals are open to feedback and see it as an opportunity for growth. They can provide and receive feedback more effectively, leading to continuous learning and improvement.

• When setbacks and challenges occur in any process improvement efforts, EI tends to be more resilient, bouncing back from setbacks and maintaining a positive attitude in the face of adversity.

• Motivation is an important aspect of EI, as it is related to the human senses and emotions . It is intrinsically motivated and can inspire others to stay committed to improvement goals.

• EI emphasizes empowering employees and the team to make improvements by trusting them to take ownership of improvement initiatives and make decisions that benefit the organization.

In summary, emotional intelligence plays a vital role in the success of an organization’s ultimate goal by building a better equipped and effective team who can communicate clearly, lead change, resolve conflicts, and maintain a customer-centric focus culture.