Thursday, January 30, 2020

Fixed interest for productive sector financing: FM


Kathmandu, Jan. 24
Finance Minister Dr. Yuba Raj Khatiwada Friday said that the government would support the entrepreneurs with fixed interest rates in bank financing if they invested in the productive industrial sectors.

"You should be no more worried about the interest rates that went up every other day. The Ministry of Finance (MoF) is discussing the issue with the central bank and banks and financial institutions," he said while speaking at the 40th Annual General Meeting of Nepal Foreign Trade Association (NFTA) in the capital.

According to him, interest rate is gradually improving and is stable for the last one year. There will be more liquidity in the banks and financial institutions in the next couple of months.

He said that the government was ready to implement the transaction cost in customs evaluation.
President of Nepal Chamber of Commerce Rajesh Kazi Shrestha had urged the Finance Minister to implement the transaction price of the imported goods. The NCC is long been lobbying for the same.
Dr. Khatiwada said that the government was not worried about the decreasing imports but about the lack of competitiveness of Nepali goods.
"The government is not worried about the decreased import since luxury and harmful goods are being discouraged from bringing in the country. The real problem now is the lack of competitiveness of Nepali goods, its due to our poor productivity," he said.

"Therefore, our focus should be to enhance the productivity. The MoF is holding discussions with the concerned ministries for the subsidised energy and other facilitie," he added.

Minister for State at the Ministry of Industry, Commerce and Supplies Moti Lal Dugar said that the ministry was ready to support every businessman that aims to run a fair business.

"We are clear about the fact that the confidence of the business community must be upheld for the positive results in business and economy," he said. We will lay red carpet to welcome you for investment, said Dugar.  

According to him, the government was ready to send a high-level team to India to talk about the palm oil export.

Shekhar Golchha, Senior Vice-President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that the country should give a fresh start to increasing export of Nepali goods with robust infrastructure development, reform in administrative process, as well as easy financing and business modality.

"Countries like Cambodia, Sri Lanka, Rwanda and Ethiopia have done much better in export trade but Nepal has long failed for it. Therefore, we need to prepare from the beginning," he said.
"We must not discourage import but increase export. Decrease in import might create price escalation in the domestic market which will affect the consumers," said Golchha.

Satish Kumar More, President of Confederation of Nepalese Industries (CNI) also urged the government to resolve the palm oil issue at the earliest. He also said that the export house concept must be implemented at the earliest and port facilities should be used for the trade with the third countries.
The AGM has unanimously elected Sunil Kumar Bansal as the president of NFTA.


Published in The Rising Nepal daily on 25 January 2020. 

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