The government on Sunday announced it will accord high priority to ending Nepal’s dependence on a “single country” in trade, investment and essential supplies, against the backdrop of four-and-half-month-long Indian embargo.

Presenting the “Policies and Programmes of the Government for Fiscal Year 2016-17”, President Bidya Devi Bhandari announced the government will work towa-rds diversifying supply sources, including of petroleum products, making the country self-reliant in certain products, and increasing connectivity with China.

Currently, Nepal’s two-thirds of trade takes place with India, which is also the sole petroleum supplier to Nepal. During the blockade, India curtailed fuel supplies significantly, which not only affected the general public, but also led to suspension of development projects, closure of industries, and economic slowdown.

“The earthquake and obstructions at the border points have exposed the risk of our development and dependence on others,” read the Policies and Programmes. “This incident has taught us a lesson to move towards self-reliance-oriented, multi-interdependent economic system realizing the challenges that excessive dependence on one country in trade, investment and supply system may generate.”

According to the document, the government will work towards making the country self-reliant in essential goods and services, while diversifying trade relations and transactions. “The country will move towards building sustainable, independent, self-reliant and just economy moving on the path of self-reliance particularly on food, medicine and energy.”

The government announced it will prioritise exploration and drilling of petroleum products within the country. “Petroleum storage capacity will be increased, covering all seven provinces, for meeting minimum of 90-day demand in order to ensure regular and smooth supply of petroleum products,” the document read.

The government will also prioritise operationalisation of transit facility and expansion of electric transmission line as per a recent agreement with China during Prime Minister KP Sharma Oli’s visit to Beijing.

The government said construction and upgradation of Rasuwagadi and Kimathanka roads will be carried out and the Tatopani customs point will be brought back into operation along with the upgradation of the Araniko Highway.

Experts, however, said although diversification of supply sources is desirable, Nepal’s overdependence on India will continue for some years. Former Vice-chairman of National Planning Commission Shankar Sharma said Nepal’s dependence on the southern neighbour will continue in the short-run. “The operationalisation of China transit will not be cost-effective until the two countries are connected with railway,” he said. “But the signing of the transit agreement with China has a great political and psychological value as it gives a sense of security in the case India imposes another blockade.”

Another key priority of the government for the next fiscal year will be reconstruction of damaged houses of the people during last year’s earthquake and providing them with employment opportunities. As per the Policies and Programmes, in addition to the grant of Rs200,000, a collateral-free soft loan of Rs300,000 will be provided under collective guarantee of house owners.

The provision of a soft loan of Rs1.5 million for rural areas and Rs2.5 million for the Kathmandu valley will be also be continued. In order to help quake survivors, the government has also announced “One House, One Employment” programme in earthquake-affected areas.

State to fund Fast Track project

KATHMANDU: The government on Sunday announced it will develop the Kathmandu-Nijgadh Fast Track project on its own. A few days ago, the Cabinet had decided to construct the Second International Airport in Nijgadh with government resources. Indian developers had eyed these two projects, with India’s External Affairs Minister Shusma Swaraj asking Nepal to develop these two projects with India’s participation during last year’s International Conference on Nepal’s Reconstruction. (PR)