Saturday, January 8, 2022

PM Deuba pledges support to boost export trade

Kathmandu, Jan. 6

Prime Minister Sher Bahadur Deuba stressed on better trade infrastructure to promote Nepal's export trade.

In a message sent to the ECN on the occasion of 24th Annual General Meeting of Export Council of Nepal (ECN) and 6th National Export Day programme organized in the Capital on Thursday, he said, "Development of entrepreneurship and trade infrastructure is imperative to increase productivity and enhance export trade for stronger economic growth."

He also pledged the state support to entrepreneurs in enhancing Nepal's export to the international markets.

Addressing the programme, Finance Minister Janardan Sharma, said that it was unfortunate that the country is exporting labour force and importing finished goods.

"We should move on the direction of economic self-reliance and there should be greater cooperation and collaboration between the government and private sector," he said.

He pledged for policy support to the private sector to replace import and promote export. He also said that the financial system is facing a liquidity shortage now and enhanced trade can help in addressing this challenge.

 

Exporters need 'Export Ambulance'

Hari Bahadur Karki, President of ECN, expressed worries over the widening trade deficit. Stating that Nepal has witnessed Rs. 735 billion trade deficit in first five months of the current fiscal year 2021/22, he said that the country had missed the opportunity to make its products competitive in the international markets.

According to him, process of export trade is still complex and cumbersome, it discourages the producers and exporters but the government is not serious about addressing the issues.

For stronger export trade of Nepal, Karki suggested increasing competitiveness of Nepali goods, better quality control, robust promotional activities in domestic and international markets, establishment of skill development centre and export house, and subsidy and financial support to entrepreneurs.

He also demanded special provisions for the promotion of indigenous goods and organisations of an international level export promotion expo in Nepal.

Karki also recommended the government to operate 'export ambulance' to facilitate an unobstructed movement of goods during strikes and other disturbances.

Shekhar Golchha, President of the Federation of Nepalese Chambers of Commerce and Industry, said that the primary challenge to Nepal's international trade is the cost of production. “Until and unless we drastically bring down the cost of production including transportation, Nepali products can't compete with the international goods,” he said.

Golchha maintained that Nepal should have a plan to adjust with the losses of favourable trade policies in various developed countries after 2026 – the date the country will graduate to the 'developing nation' from its current Least Developed Country status.

 

DPR of Exhibition Centre ready

Suyesh Khanal, Acting Executive Director of Trade and Export Promotion Centre (TEPC), informed that the Detailed Project Report of the proposed international exhibition centre at Chobhar in Kathmandu is prepared, and government is making arrangements for the resources required for the development of this infrastructure

Hemraj Dhakal, Vice President of Confederation of Nepalese Industries (CNI), said that a special package should be designed to make Nepali goods more competitive in the global market. According to him, the government should facilitate in the transfer of technology that helps in enhancing the size and quality of product.

Similarly, Surendra Kumar Shrestha, VP of Nepal Chamber of Commerce, demanded that refinancing facility should be extended for another year as the businesses have been affected by the COVID-19 pandemic for two consecutive years. The NRB had implemented the facility for a year through the Monetary Policy of Fiscal Year 2020/21. 

Published in The Rising Nepal daily on 7 January 2022. 

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