The visiting Czech Republic delegation has asked Nepal to sign Double Taxation Avoidance Agreement (DTAA) that will pave way for the investment agreement in future.

“A delegation of Nepali businessmen should visit Czech Republic to discuss possibilities of cooperation with Czech companies,” the visitors said during an interaction with the Confederation of Nepalese Industries (CNI) here today.

“The Czech Republic is ready to sign a Cooperation Agreement with CNI,” they said, adding that based on the agreement a Joint Committee on Economic Cooperation will be established.

“Nepal and Czech Republic have vast scope of cooperation in areas of trade, commerce and development,” said the Czech Republic’s ambassador to Nepal Miloslav Stašek, who led the diplomatic team to Nepal. Czech Republic is poised to take initiative to materialise the potentialities, he said, adding that they see distinct possibilities to cooperate in hydro power projects, waste management, water solution, tourism and services. “A Memorandum of Understanding (MoU) between the CNI and CCI will enable business communities of both countries to work together more closely.”

Welcoming the envoy senior vice president of CNI Narendra Kumar Basnyat said the visit of Czech ambassador and interaction will play a pivotal role to strengthen economic relations and cooperation between the two countries especially the private sectors of both the countries in particular.

“CNI has considered the visit as an opportunity for fostering the bilateral economic relationship,” he said, adding that they will also finalise the MoU to be signed with the CCI and CNI, which is expected to expand business relation among entrepreneurs of both the countries and will definitely be able to enhance future cooperation and investment in development initiatives.

Similarly, vice president of CNI Hari Bhakta Sharma, on the occasion said that private sector in Nepal has been vibrant and active in enhancing the economic activity.

“There are vast areas of potentiality waiting to be exploited in agriculture sector as a commercial venture,” he said, adding that the government is also committed to create business friendly environment by implementing New Industrial Policy, established Investment Board and is bringing new Industrial Enterprise Act to attract foreign direct investment.

In the programme where Honorary Consul of Czech Republic in Nepal Bishnu Agrawal and CNI members, entrepreneurs from the both countries took part, head of commercial and economic section of embassy of Czech Republic India Jiri Janick presented a paper on the socio economic scenario of Czech Republic including its export and import as well as possibilities of expanding trade with Asia Pacific and Nepal.

The volume of trade between Czech Republic and Nepal has been increasing gradually but it is in favour of the Czech Republic. Nepal exports mainly readymade garments, handicrafts, hand-knotted woolen carpets, tea and medicinal herbs to the Czech Republic. Imports from the Czech Republic mainly constitute medicine and medical equipment, electrical goods, machinery and parts, glass beads, motor cars, bulldozer, crane and parts and foodstuffs. Nepal exported goods worth $1.593 million in 2011 while Czech Republic exported goods worth $3.166 million in 2011.