Situated in a unique geographical position with respect to the Chinaproposed Belt and Road Initiative, Nepal expects to gain momentum for its development by taking part in the regional development blueprint. In a speech given at the Symposium on NepalCh

n the six-plus decades of their diplomatic relations, Nepal and China have laid solid foundations for maintaining and further accelerating their good neighborly relations. Now the time has come to elevate our unique and exemplary relations one step higher to a strategic partnership for economic growth and development. Nepal’s economic history shows that the country thrived and prospered socially and economically during periods in which its trans-Himalayan trade boomed and flourished.

A new era for cooperation

Nepal and China have concluded many bilateral agreements and have in place several bilateral mechanisms between them for fostering mutual cooperation in areas such as trade, culture, transport, investment and tourism. Earlier this year, the Government of Nepal and the Government of the People’s Republic of China signed their Memorandum of Understanding (MoU) on Cooperation under the Belt and Road Initiative in Kathmandu. The MoU lays emphasis on promoting mutually beneficial cooperation between Nepal and China in various fields of mutual interest such as economy, energy, environment, technology and culture.

The agreement on the Belt and Road Initiative is of historical importance to both countries. Nepal is confident that the Belt and Road Initiative will help build critical infrastructure in the Himalayan region and remove the barriers for seamless move- ment of people, goods and services across the Nepal-China boundary, benefiting not only Nepal, but also the other countries in the region. Moreover, the improvement in transportation and connectivity will help all the countries in the region to integrate their markets and reap the benefits of expanded trade and commerce. Indeed, the MoU on Cooperation under the Belt and Road Initiative will be a starting point in that new voyage.

In the 62-year journey of our diplomatic relations, we take pride in the remarkable achievements we have made in various fields of cooperation. More recently, the avenues for bilateral relations between Nepal and China have widened further. The two countries have witnessed remarkable growth in the volume of trade, number of tourists and flow of investment between the two countries over the years. Yet we still have tremendous hidden potential to further expand cooperation for mutual benefits. The volume of trade between the two sides increased by 10 fold in the last 11 years, the flow of tourists from China to Nepal increased by 12 fold in the last 15 years, and investment from China also increased many fold over the same period, placing China as the main source of FDI in Nepal in 2016. One area of concern, though, is the alarming trade deficit, which needs to be corrected with due priority by focusing on the development of infrastructure, improvement of physical connectivity, trade, investment and tourism. Let me take this opportunity to highlight that one of the most important aspirations of the Nepali people is the construction of railways linking Nepal’s major cities with China. I believe this is a doable project and can be fulfilled with Chinese resources and the nation’s state-of-the-art technology. Happily, top leaders in both countries have committed to working toward this end.

Opportunity for Nepal

Nepal cannot afford to languish in poverty while our neighbors make rapid progress in every sphere of human endeavor. Therefore, our focus should be on economic development. No doubt, the edifice of a peaceful and stable country can be erected only on the strong foundations of economic development and prosperity. Economic vulnerability remains at the core of political instability. A peaceful, stable and prosperous Nepal will be in the interest of our neighbors as well.

We have various avenues for mutual partnership and collaboration. In recent years, we have concluded important instruments to deepen and expand our cooperative relations. We have committed to fully implementing the agreements and understandings reached in the past, and ensuring solid deliverables for the benefits of our people. And, most importantly, our bilat-