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(f) Exploring possibility for sea-route for expanding interna� onal trade
connec� ng Bay of Bengal, Indian Ocean, and Arabian Sea;
(g) Crea� ng a hub for interna� onal tourism, and preserving biodiversity
with commercial viability;
(h) Promo� ng decent and safe foreign employment at lucra� ve
des� na� ons by developing quality human resources as per
requirements of interna� onal labor market and maximizing fl ow of
remi� ances through offi cial channels;
(i) Promo� ng small and medium scale enterprises (SMEs) with private
sector investment and developing large scale industries and megaprojects
at the ini� a� on of private sector by a� rac� ng FDI, which
would immensely help create employment opportuni� es at home;
and
(j) Crea� ng an Interna� onal Financial Services Center (IFSC) by 2015
and mobilizing investment capital to accelerate development for the
whole region (high scenario) (Dahal, 2004).
Nepal is surrounded by rapidly expanding economies compe� ng
each other to become global economic power with for which they need
huge investment-capital and fi nancial services. A modern Interna� onal
Financial Services Center located at Nepal could meet these requirements
of neighboring countries India, China and also SAARC countries, which will
help create a unique opportunity for Nepal to prosper in the 21 st century.
“Interna� onal Financial Services Center (IFSC) will help create employment
opportunity at all skill levels, provide revenue to treasury, strengthen
informa� on technology, improve status of infrastructure, and increase
fi nancial credibility of the na� on” (Collins et al., 1996).
The strategic objec� ves should be to:
(a) Substan� ally increasing GNI with double-digit growth rate
ensuring a high GNI per capita exceeding US$ 3,000 (average of
middle income economies) per annum within the said � meframe;
(b) Providing employment to each economically ac� ve popula� on;
(c) Comba� ng infl a� on by increasing produc� on and produc� vity of
both agriculture and manufacture sectors in the long-run;
(d) Reducing absolute poverty from 25 percent to zero percent by
2025; and
(e) Improving effi ciency and compe� � veness, and governance in all
spheres and fi gh� ng against rampant corrup� on.
The strategy for economic development should be directed towards:
(1) Sustaining exports of carpets, garments, handicra� s, herbal
and medicinal products, tea, cardamom and len� ls (pulses) to
interna� onal markets with iden� fi ca� on of new products including
yarshagumba.
(2) Reviewing Nepal-India Trade Treaty to expedite exports to India
Changing paradigms of aid eff ec� veness in Nepal 33