Saturday, November 12, 2016

Economic progress needed to institutionalise political changes

Lalitpur, Nov. 9
Former finance ministers Wednesday said that well founded economic progress can only institutionalise the political changes.
Speaking at the national seminar on foreign direct investment (FDI) in Nepal organised by the Society of Economic Journalists Nepal (SEJON), former Finance Minister Barsha Man Pun said, "Having good policies for the industrial development and economic progress is not enough, effective implementation of such policies is the key to the economic growth."
Another former Finance Minister Surendra Pandey said that changes were needed in both the political parties and bureaucracy in order to create the business environment in the country.
"In order to improve the political sector, politician should be involved in the businesses. When they run their own business, they will understand the hardship of the private sector and thus may refrain from asking donations from the business community," he said.
He blamed the bureaucracy for resisting the industrial and business development. "They always wanted the service seekers coming to them time and again."
Former Minister for Irrigation N. P. Saud said that the political leaders lacked the sensitivity required to push the economic agenda forward.
According to him, the trade unions were motivated by the interest of their parent political parties and were concerned to the short-term inters of the labourers instead of the sustainability of the businesses.
Minister for Industry Nabindra Raj Joshi said that the bill of Company Act would be sent to the cabinet within a couple of weeks.
He said that the government was working to improve the policy regime in order to create investment environment to attract more domestic and foreign investment.
The Ministry of Industry (MoI) has prepared the draft bill of Foreign Investment (Amendment and Integration) Act to replace the Foreign Investment and Technology Transfer Act, 1992 and having consultation with the stakeholders on the draft.
Country director of Berger Jenson and Nicholson (Nepal) Saibal Ghosh said that there wre some policy and operational difficulties in the manufacturing sector.
He cited low production efficiency of workers, small market, freight problem in goods export, slow government process while establishing business and repatriation problems as the obstacles to the FDI in the country.
He asked the government to ease the process of business registration and its liquidation.
Senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Bhawani Rana said that the foreign investment would help to develop the business or industry in the country through technology transfer.
"A large FDI will also attract ancillary industries which will create a large number of employment. Therefore, the government should facilitate the foreign investors in establishing their businesses with better policies and one window services," she said.
President of Confederation of Nepalese Industries (CNI) Hari Bhakta Sharma urged the government to allow the Nepalese investors to invest in the foreign countries.
He appreciated the draft bill of Foreign Investment (Amendment and Integration) Act and said that if implemented, it would improve the business environment in the country.
Senior economist Dr. Shankar Sharma said that that the reinvestment of the foreign investors should be welcomed.
Joint secretary of the MoI Yam Kumari Khatiwada claimed that the government wanted to ease the entry and exit process and simplify the process of business.

"But, there will not be any provision which causes injustice to the domestic investors," she said. 

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