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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

In the past Nepali month of Chaitra (mid-March to mid-April), authorities arrested 28 Bangladeshi nationals from various parts of the country. 

Among them, 18 had overstayed their visa and were illegally residing in Nepal. Ten others were apprehended for taking hostage and torturing several men from their own country at a Kathmandu-based hotel. They had brought the victims to Nepal with the promise of sending them to countries like the US, Canada, Italy, and Croatia. The accused had also taken hundreds of thousands of dollars from the victims. 

That same month, police arrested four Pakistani men for confining six Sri Lankans in two hotels in Kathmandu. According to Metropolitan Police Range spokesperson Ravindra Regmi, Pakistani and Sri Lankan agents collaborated to transport the hostages to Kathmandu on the pretext of flying them to Europe and other destinations. 

“In the process, they received substantial sums from them. Six Sri Lankan citizens paid 7.5m Sri Lankan rupees to the agents, with additional payments in USD,” says Regmi.

Similarly on Feb 15, a team from the District Police Office, Kathmandu, rescued 11 Indian citizens from captivity near Ratopul, Kathmandu. Eight individuals who held them captive are in custody, having brought the victims to Kathmandu, falsely promising easy access to the US via Nepal.

These incidents highlight a recent surge in crimes committed by foreign nationals in Nepal. The lenient arrival visa policy has attracted foreign criminals, who engage in human trafficking, drug smuggling, murder, theft, and fraud. 

According to the records of Nepal Police Headquarters, in the last 3.5 years, 480 foreign nationals have been involved in crimes in Nepal. From fiscal year 2077/78 BS to the present fiscal year 2080/81 BS. Among them, the majority are Indian nationals (192), followed by Chinese (84), and Bangladeshi (32) nationals. 

Gokarna Khanal, information officer at the Department of Prison Management, says there are 1,384 foreign nationals in prisons across the country. Of them, 1,204 are Indian nationals, 24 are Chinese nationals, three are Bangladeshi nationals, and 12 are Pakistani nationals. There are also eight Thais, three Filipinos, 13 South Africans, 12 Sudanese, and two American nationals.

Former Inspector General Thakur Gyawali says Nepal—where visa processes are extremely easy, and visas can even be obtained at the airport—is becoming a safe space for international criminals. Gyawali argues that besides easy arrival visa policy, Nepal’s security system itself is weak. He says due to legal loopholes, crimes committed by foreign nationals go unpunished.

The lack of robust monitoring and cooperation between agencies compounds the problem. Gyawali says the government’s data is not fully digitized online. Data related to criminal activities is shared with Nepal Police. However, economic data is shared with other entities, and data related to foreign arrivals is managed by another agency. 

“This lack of cooperation makes it difficult to monitor the activities of foreigners who enter Nepal,” Gyawai says. “We don’t have complete records of foreigners coming to Nepal. No agency is monitoring their activities. Where are they staying? How do they manage financially? Where do they get cash from?” 

If technology is updated and upgraded, Gyawali believes not only foreigners but also Nepali individuals can be deterred from committing crimes. 

The trend of foreigners getting involved in crimes is not new in Nepal, says Bhim Prasad Dhakal, spokesperson for Nepal Police. But he does not agree that Nepal’s law enforcement agencies are weak or ineffective.

“Compared to other countries, Nepal’s security is strong. No matter who or how one commits crimes, they can’t escape the police,” he says. “Also, it is not right to say that professional criminals come to Nepal and commit crimes.”

Security expert Prof. Indra Adhikari proposes enhanced scrutiny of tourist visas and digitization of foreign nationals’ activities. “A balance between tourism promotion and security measures is essential to curb criminal activities,” he says.

Adhikari is against vilifying the security agencies for increased crime rates. In comparison to the past, he mentions that the occurrence of serious crimes has decreased, indicating that the security agencies have become modern, efficient, robust, and trustworthy. 

“Criminals are always a step ahead of the law and security agencies. The number of crimes is increasing not only here but also in every country. Nepal Police is also vigilant and sensitive regarding the involvement of foreign nationals in crimes and criminal behavior. Impartial investigations are being conducted.”

On April 7, the Ministry of Home Affairs issued a directive to all 77 district administration offices across the country for increased surveillance of foreign nationals, emphasizing accountability for illegal activities. 

According to Narayan Prasad Bhattarai, spokesperson for the ministry, surveillance of foreign nationals entering all districts has been increased. 

“No one, whether domestic or foreign, is exempt from engaging in illegal activities while staying in Nepal. They will be brought under the legal framework,” he says.

Prime Minister Pushpa Kamal Dahal has been stating in various forums that a budget of up to Rs 1.9trn would be needed for the fiscal year 2024/25.

The private sector, meanwhile, has been saying that a larger budget would have an adverse impact on them. Speaking at a pre-budget roundtable recently, business leaders said a large budget size will put pressure on resources, and as revenue and tax rates will have to be increased for this, ultimately the private sector will have to bear the brunt. They said that the government should bring a budget that can be implemented rather than focus on its size. In their suggestions to the finance ministry, which is preparing the budget for the upcoming fiscal year, they have requested the government to not exert pressure and dampen the morale of the private sector.

Rajesh Kumar Agrawal, President of the Confederation of Nepalese Industries (CNI), said that if the government focuses on a large budget, it will put pressure on the private sector. “This will help neither the government nor the private sector,” he added. “A wrong narrative is being created that credit extended to the private sector is being misused. This should be corrected.”

Likewise, Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), urged the government to bring a budget that can be implemented. “Since we recently held the 2024 Nepal Investment Summit, the coming fiscal year should be taken as the beginning of the investment decade. It seems that the monetary policy was not in sync with the budget. As a result, the government is not being able to achieve what it intends to achieve,” he added. Likewise, Nepal Chambers of Commerce (NCC) President Kamlesh Agrawal requested the government not to increase tax rates that would put an additional burden on the private sector. “Rising tax rates alone do not guarantee revenue growth. It can encourage smuggling,” he added.

Sunil KC, president of the Nepal Bankers’ Association, complained that construction entrepreneurs have been adversely affected as the government has not increased the size of capital expenditure which has ultimately led to an increase in bad loans in banks. “The construction sector accounts for the highest non-performing loans (NPLs) in the banking system. This situation has arisen because the government failed to make capital expenditures,” he added.

Likewise, Upendra Prasad Paudyal, president of the Bank and Financial Institutions Association of Nepal (BFIN), said NPL levels in the banking system can be controlled if the government is flexible towards the construction sector. “The government should encourage construction even by issuing bonds if needed. If that sector rises, NPLs will decrease, and other sectors will also improve,” he said.

On the other hand, Ganesh Karki, president of the Independent Power Producers’ Association (IPPAN), suggested that the budget give special priority to the hydropower sector, as hydropower construction not only generates electricity but also builds roads, triggers market expansion, and creates employment simultaneously.Similarly, Karan Kumar Chaudhary, president of the Nada Automobile Association of Nepal, complained that the government has forgotten the automobile sector. He said that the automobile sector has fallen victim to double taxation.

Economist Prof Dr Achyut Wagle suggested making bold decisions and showing courage for reforms, as the sectors traditionally considered the backbone of the economy are currently facing problems. “Nepal is falling behind as it has failed to identify and develop potential sectors. There is a need to explore new revenue sources,” he added. Likewise, Resham Thapa, head of the Department of Economics under Tribhuvan University, said local units shouldn’t be undermined while preparing the budget.

Deputy Prime Minister and Minister for Health and Population Upendra Yadav resigned from his post on Monday.

 He submitted resignation to Prime Minister Pushpa Kamal Dahal this morning. 

Yadav, also the Chairman of the Janata Samajbadi Party Nepal, mentioned in his resignation letter that he decided to resign as he was not feeling comfortable to work together with the ruling coalition parties staying in the government in the evolving political situation.

He also thanked the Prime Minister for providing the opportunity to work in the government.

Similarly, Minister of State for Health and Population Deepak Karki representing the government from the same party also resigned from the post today itself.