India, Nepal to sign DTAT during Pranab's visit

KATHMANDU: India and Nepal are to sign the Double Taxation Avoidance Treaty during the visit of Finance Minister Pranab Mukherjee here on Sunday.

"Nepal government is eagerly awaiting the forthcoming visit of Indian Foreign Minister Pranab Mukherjee to Nepal," Nepalese Finance Minister Barsha Man Pun told reporters at a function organised by the Indian Embassy here.

Mukherjee is scheduled to arrive in Kathmandu on a day long official visit on Sunday.

During the visit, Nepal and India will sign the Double Taxation Avoidance Treaty (DTAT), the Nepalese minister said.

Meanwhile, Indian Ambassador to Nepal Jayant Prasad said the long-term economic partnership between Nepal and India will help in bringing economic transformation in the Himalayan nation.

It is also in the interest of India to have peaceful, stable, democratic and prosperous Nepal, as it will help bring prosperity to the entire South Asia region, Prasad said.

The Indo-Nepal relations are defined by geography and enriched by history and we are taking advantage of this geographical proximity and cultural linkages to the benefit of the peoples of both countries, he pointed out.

India-Nepal trade stands at USD 4 billion with Nepal having a huge trade deficit at the ratio of 6:1, he said adding the Himalayan nation can tackle problem if it could properly utilise its immense hydro-potential.

Nepali Congress central member Ram Sharan Mahat said Nepal government should create investment friendly environment for attracting foreign investment to bring about economic prosperity in the country.