Economic

Importance of transportation and communication

in economic development of Nepal

Submitted By: Shrayo Maharjan

Submitted to: Satish Bhattarai
Class:11 Subject: Economic
Section: D Management
 Introduction
Transport and communication are important
infrastructures for the overall economic development of
a country. Transport is that facility by which people can
move and transfer goods and services from one place to
another. The important means of transport in Nepal are
road transport, railway, ropeway, cable car, trolley bus,
and air transport. By the end of 2075 B.S., 76 districts
(out of 77) are connected by road network (except
Humla). Among them 71 districts are connected by black
topped roads. Recently, all the district headquarters are
connected by road network in Nepal.

Communication is defined as the medium of exchanging

news, views and information. Important media of
communication in Nepal are postal service, radio,
telephone, interest, email, fax, television and newspaper.
Communication is available in all 77 districts of Nepal.

According to “World development report” The adequacy

of infrastructure helps to determine one country’s
success and another’s failure in diversifying production,
expanding trade, coping with population growth,
reducing poverty, or improving environmental
conditions. Good infrastructures raises productivity and
lower production costs.

Importance
Transport and communication
are important means and
media for the development
socio-economic structure of Nepal. Transport and
communication have been considerate as a prerequisite
for the socio-economic development of country. The
important role of transport and communication are
explained below:
1)Basis of agricultural development
Transport and communication play a vital role in the
development of the agricultural sector. Materials and
equipment necessary for agricultural field through
transport services. Efficient transport and
communication system throughout the country
facilitates the flow of goods and services, information,
agricultural input and technology which help to develop
the agricultural sector.
 2)Basis of industrial development
Development of transport facilities help to carry raw
materials from one part to other parts of the country and
outside the country. Efficient flow of inputs and outputs
is the basic prerequisite for industrial development.
Communication facility is used to get information about
the condition of demand, supply, price, and latest
technology. They also help to increase demand and
supply, price, and latest technology. They also help to
increase demand and supply in the economy. So
development of transport and communication plays a
vital role for the country’s economic development
through industrialization.

3) Utilization of natural resources

Our country is rich in natural resources like water,
forest, and minerals. The development of transport and
communication facilities would help to utilize these
natural resources. Most of the hydroelectricity projects
are in hilly areas. To run these projects, adequate
transportation and communication facilitates are
urgently required.
 4) Basis for tourism development
Development of tourism is impossible without efficient
transport and communication system. Tourists require
transport and communication facilities to travel to
various parts of the country. Tourism in Nepal is limited
to only a few places due to the lack of transport and
communication facilities. Our country has not been able
to earn enough foreign exchange earnings due to the
lack of transport and communication facilities.

5)Basis of tertiary sector development

Transport and communication is an integral part of
tertiary sector helping to promote trade and commerce.
Increase in financial activities plays an effective role in
the economic development of tertiary sector like trade,
commerce, banking, insurance, transport,
communication, education, and health is essential for the
economic development of a country.

6)National integration
Nepal is a country of multi-ethnic groups with different
cultures, religions, languages, and beliefs. Transport and
communication facilities promote national unity among
different groups of people and different political and
economic regions in terms of transport and
communication is a precondition for the economic
development of the country.

7)Easy for administration and defense

Transportation and communication services between
various districts of the country are necessary to ensure
good administration. Peace, law and order can be quickly
and easily maintained through efficient transport and
communication system. Improved transport and
communication facilities also help to mobilize
government line agencies in every nook and corner of
the country.

Means of Transportation
There are various means of transportation in the world.
The modern means of transportation include surface
transport, air transport, sea routes, etc. The main means
of transportation used in Nepal are surface transport and
air transport.
 Surface Transport
Surface transport include road transport, ropeway
transport, trolley bus, cable car, etc.
1(Road transport
Due to rugged physiography of
Nepal, road transport gets an
important place in Nepal. It is the
major means of transport in Nepal.
but 2007 B.S there was only 376
kms of road including 5kms of blacked topped. But by the
end of 2021/22, a total of 33,871km road has been
constructed by the central government and 64617 km
road has been constructed by provincial and local levels.
Type and total length of road of Nepal by central govt. (in km)
Type 2014/1 2017/18 2017/19 2019/20 2020/21
5
Black 13707 14695 15424 16614 16939
topped
gravelled 7231 8594 8622 8171 8111
Fair 9150 9590 9198 8931 8821
weather
total 30088 32879 33244 33716 33871
Length of road constructed by provincial and local level
(km)
Type 2014/15 2017/1 2018/19 2019/20 2020/21
8
Black 43190 43950 45693 45959 46441
topped
gravelled 13160 13560 13416 13392 13629
Fair 2735 3963 4212 4345 4547
weather
total 59085 61473 63321 63696 64617
Source: Economics Survey 2021/22, MOF. (*upto mid March

The highways of Nepal occupy the larger percentage of

the total length of road of Nepal.
 2) Railway transport
Janakpur-Jayanagar Railway,
which is 52 km long, was
constructed in 1936. Now it is the
transportation facilities for the
people and to carry goods in Janakpur-Jayanagar area.
The feasibility study of East-West railway has been
completed. The construction work has been started from
Eastern Nepal.
3) Ropeway (cable car)
This transportation system operated
on electrical cable is called ropeway.
During the Ninth Plan period, as per
the government policy of promoting
private sector participation in the
transport sector, a cable-car project
had been undertaken by private sector from Kuringhat
(Chitwan district) to Manakamana (Gorkha district)
spanning 3.1 km. Recently, new cable car system
spanning 3.0 Km has been constructed in Kathmandu
from Thankot to Chandragiri (a historical and religious
place). This cable car system has constructed in 2015/16.
Likewise, Cable car service is available in Kalinchowk
temple and various other places.

4) Trolley bus services

Bus service operated by electric
power is called trolley bus service.
Trolley bus service in Nepal was started in 1975 AD under
the Chinese assistance. Its length was 13 km from
Tripureswor (Kathmandu) to Suryabinayak (Bhaktapur).
But the trolley bus is out of service due to corruption and
lack of proper repair and maintenance.

Air transport
Air transport started in Nepal on a
regular basis in 1953 AD with
three old aircrafts which belonged
to an Indian company. The air
transport system was developed
in the country with the establishment of then Royal
Nepal Airlines Corporation (RNAC) in 1958 AD. Tribhuwan
International Airport having its initial runway length of
6,000 feet was constructed with American assistance.
Modern equipment of air traffic control like RADAR have
been installed under the assistance of Japan in 1998 AD.
Since, Nepal is a mountainous country, if face many
difficulties to developed the road facility to all part of
country. Therefore, air transport is the only alternative
means of transport to link hilly and the Himalayan region
of Nepal with urban areas. The air service of Nepal is
being directed by Nepal Civil Aviation Authority (NCAA)
established by the government in 1998 AD. Nepal Airlines
Corporation (NAC) is working under NCAA and it has
provided air service to both domestic and international
sectors. NCAA has extended its international flights to
many cities of India, Thailand, Kula Lumpur, Hong Kong,
Singapore, Qatar, Dubai, Tokyo, Beijing, etc. The NCAA
also directs 15 private airline companies established in
Nepal after the implementation of privatization and
liberalization policy by GoN in 1992 A.D.
At present, Nepal has 53 airports including two
international airport in Kathmandu and Bhairahawa.
Among them, 32 airports are offering regular services for
air transport. A total of 120 helipads have been
constructed in the country. According to the government
policy of promoting private sector participation in air
transport service, several private
airlines have been operating in the
country. They are Buddha Air, Sita Air,
Yeti Airways, Simrik Airlines, Saurya
airlines and so on. We have now only
one international airport. Two international airport are
under construction at Pokhara and Bhairahawa.
 Means of Communication Services
There are two ways for establishing communication. One
is personal communication and the other is mass
communication. Postal service, wireless, telephone, and
e-mail are the means of personal communication and
radio, television, and newspapers are the means of mass
communication. Some important means of
communication services in Nepal are as follows:
1)Postal Services
Postal service is one of the traditional modes of
communication services in Nepal and it is one of the
most important communication services. Postal services
started in Nepal since 1935 B.S. By the end of the fiscal
year 2016/17, there were 3992 post offices in Nepal. It
includes one General Post Offices (GPO), five regional
post offices, 70 district post offices , 842 area post
offices, and 3074 additional post offices. 117 post offices
are providing postal saving bank services. Express postal
service has been operated in 60 locations inside the
country and foreign courier services in 38 countries.
According to the government policy of promoting private
sector participation in the communication, private sector
is also providing express mail services both inside and
outside the country.

2)Telecommunication services
Telecommunication is the easiest and
fastest means of communication. The
Telecommunication Department was
established on 2016 B.S. in Nepal. The
development of telecommunication
services in Nepal is extended to all the 77 districts of the
country. At present, Nepal Telecommunication Company
(Nepal Telecom) is providing telephone services through
a total of 159 exchange offices. By the end of 2019, the
total number of telephone subscribers has reached
4,22,82,658. The total number of mobile users reached
to 4,14,54,748 by 2021 (Economic survey 2021/22).
Nepal Telecom has been providing Subscribers’ Trunk
Dialling (STD) services in all 77 districts. Now, Nepal has
international telephone linkage with more than 131
countries of the world with 1149 circuits available for this
purpose. The mobile service has covered 90 percent area
of Nepal.
 3)Radio broadcasting services
One of the most important means of mass
communication is radio broadcasting service. Radio
Nepal as established in 2007 BS. Its Shortwave
broadcasting service has been accessible throughout the
country. About 87 percent of the population can now
enjoy its service and it has covered 91% area of Nepal
under the medium-wave transmission by the end of
2021. Radio Nepal is also using V-SAT (Very Small
Apparatus Terminal) to make its broadcast audible
throughout the country. Radio Nepal is broadcasting
news in Nepali, English, Sanskrit, Hindi, Maithali,
Bhojpuri, Gurung, Awadhi, Limbu, Magar, Sherpa, and
Urdu languages.

4)Television services
Television telecasting service is an important, effective,
and live medium of mass communication. The service of
Nepal Television started in 2042 B.S. It is expanding its
services in various parts of the country. By the end of
2019 more than 72.0 percent of the total population can
watch programs of Nepal Television and it covers 52
percent area of Nepal. Nepal Television is now
telecasting its services inside nation
and in 148 countries through satellite
system. 104 companies in the private
sector and government owned have
been provided license for telecasting,
out of which 71 television channels are
telecasting the programs by the end of 2078 B.S. The
private sector involvement in cable television
transmission is encouraging and up to now 193 cable to
operators have obtained licenses.
5)Newspapers
Newspapers are also the effective
medium of mass communication. By
the end of first eight month of 2078
B.S., the total number of newspaper
registered in various districts of the
country reached 7879. Some
newspapers are also published in other
languages such as Newari, Maithali, Hindi, etc. Besides
newspapers, newsmagazines are also published in
different languages.
 6)E-mail and internet
E-mail and interest are the fastest, latest and modern
form of communication. We can communicate easily and
fast by using such means. The interest facility has
reached to 82.8% population of Nepal by the end of 2077
B.S. (Economic Survey , 2020/21). Internet is used for
communication, to browse information, study and
research, e-commerce, etc.
 Current Status of Transport and
communication

Transport and communication and the basic pillars for

economic development of the nation. However,
Nepalese people are unable to enjoy its facility
throughout the nation. Recently surface transport and air
transport are providing transport facility in Nepal. Except
for some recreational purposes, we do not have water
transport in other nations. By the end of 2018/19 A.D.,
76 districts (out of 77) are connected by road network
(except Humla). Out of the 51 airports of Nepal (including
6 airport under construction), 35 of them are offering
regular services for air transport. By then end of
2019/20, a total 34,347 Km road has been constructed in
Nepal (Economic Survey, 2019/20). The total number of
vehicles registered between 1989/90 and 2019/20 across
the country stood at 72,66,098. Railway service is
provided by Janakpur-Jayanagar railway in Nepal. The
feasibility study of East-West railway has been
completed. More than 80% Nepalese people have got
communication facility in Nepal. The total number of
telephone subscribers reached 4,15,80,396 by 2019/20.
The number of newspapers registered in various districts
of the country has reached 7801 by 2019/20. The total
number of mobile users reached 4,07,93,102 by the end
of 2019/20.

Problems of Transport and Communication

The major problems faced by Nepalese transport and
communication sectors are listed below:

1)Difficult geographical situation

Nepal is a mountainous country. Because of difficult
geographical situation, transport and communication
facilities are not developed.

2)Lack of sufficient capital

For the development of transport and communication
facilities, a large amount of investment should be made
amount of investment should be made by the
government. However, Nepal is unable to invest large
amount of budget for the development of transport and
communication due to the lack of sufficient capital.

3)Political instability
Another problem of transport and communication is
political reason in case of developing countries like
Nepal. Because of high political instability since last
several decades, Nepal is unable to develop proper
transport and communication facilities throughout the
nation.

4)Lack of sufficient power supply

One of the major reasons behind the under development
of transport and communication is lack of sufficient and
cheaper power supply. In the comparison of demand, less
electricity is produced and supplied even at expensive
price.
5)Lack of farsighted plans and policies
For the proper development of transported and
communication system, a nation needs farsighted plans
and policies. In Nepal, plans and policies changed with
change in government. There is no common view of the
policy makers regarding to development of transport and
communication.

Remedial Measures

In order to develop the transport and communication

system in Nepal, following suggestions are provided:
1)Investing sufficient capital
For the development of transport and communication,
larger amount of capital should by invested by
government. Different means of transportation and
infrastructures must be developed which needs large
amount of capital investment.
2)Provide sufficient and cheaper power supply
In order to develop road, constructing airport, etc. large
amount of power should be used. The government must
management sufficient and cheaper power supply to
operate the machines.
3)Formulation of farsighted plans and policies
Government should make farsighted plans and policies to
develop sector. Government must act today thinking and
planning for tomorrow.
4)Need stable government
A stable government, stable and suitable policies are
needed for the development of transport and
communication. So, first of all, stable government is
precondition for the development of transport and
communication.
5)Increase investment in the production of
technical manpower:
In Nepal, high skilled technician are hired from foreign
countries by paying, large amount of salary. But, if such
technicians are prepared in the nation, they contribution
more for the development of this sector.
 Conclusion

From the above analysis it can be concluded that, Nepal

has gone through many stages of Transport and
Communication development but it is still not enough for
the modern world. With more development of the
modern amenities Nepal can prosper well with the help
of Transport and Communication services.
Nepal still has many aspects that should be fixed for
transport and communications services to be developed
well such as difficult geographical situations, political
instability and lack of capital, etc. but if handled these
problems well, Nepal can use transport and
communication services for the betterment of economic
development of Nepal.