Kathmandu, Jan. 13: The private sector demanded structural adjustments and policy facilitation to reduce the cost of production and enhance the quality of product in order to boost export of made in Nepal goods.
Without reliable quality and standardisation of the products, export promotion would be impossible, business leaders said at an interaction on ‘Balancing bilateral relations in multilateral trading’ organised by Nepalese Association of Financial Journalists (NAFIJ) and Ministry of Industry, Commerce and Supplies (MoICS) on Wednesday.
President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Shekhar Golchha, said that although Nepal signed most of the regional and multilateral trade agreements to improve its image internationally, this couldn’t be reflected in trade benefits.
“If we reduce the arbitrage from the exports, we have a very small size of exports. Importing duty free or low-duty goods and exporting to India does not help the country in the long run,” he said.
Golchha suggested to expedite the construction of dry ports, container freight stations, highways and integrated check posts in order to facilitate export promotion.
He also said that Nepal should stop begging favoured nation benefits from the developed countries, instead reduce the cost of production and increase trade competitiveness.
SAFTA did not benefit Nepal
Vice Chairman of the Confederation of Nepalese Industries, Krishna Prasad Adhikari, said that the regional trade agreement, SAFTA, couldn’t help Nepali producers much as Nepali traders import finished goods with 5.5 per cent duty while producers pay 15 per cent duty for raw materials.
He urged the government and private sector to have clear understanding of the demand and need of the destination market.
Likewise, Vice president of the Nepal Chamber of Commerce, Dipak Shestha, demanded facilitation and protection for every product that helps in reducing trade deficit. “Under SAFTA, Nepal is importing the goods which could be produced in a lower cost within the country,” he said.
President of Federation of Export Entrepreneurs of Nepal, Ram Bahadur Gurung, suggested to develop trade infrastructure and domestic as well as international market for the trade growth.
‘Exploit indigenous strength’
Dr. Posh Raj Pandey, Trade Expert, suggested that the government should not run after the donor-supported programme but should try to exploit the indigenous strength in commerce and industry.
Former Ambassador and Secretary, Dr. Madhu Raman Acharya, said that Nepal should develop confidence while graduating to the developing country status from the least developed country.
“The country should practice commercial and trade diplomacy for the promotion of Nepal’s export and work to attract foreign investment instead of lobbying to continue the present discounts and facilities,” he said.
Dr. Ramesh Poudel, Associate Professor at the Tribhuvan University, said that the private sector should help the government with the projection of its production while the latter should enhance the capacity of infrastructure.
Import substitution is key
Dr. Ram Kumar Phuyal, Member of the National Planning Commission, said that import substitution is key to resolve many problems in trade and manufacturing. “Some structural changes are required to facilitate the producers to lower the cost of production and enhance the export of goods with competitive advantage,” he said.
Stating that there are constraints in logistics and supply chains, Dr. Phuyal said that the government has launched initiation for technology-friendly laws, infrastructure and policy development.
Secretary of the MoICS, Arjun Prasad Pokharel said that interdependency is the pragmatic trade approach and the country should not aim to produce everything and try to export all of them.
He said that quality, low cost, efficient logistics and trade practice and intelligence are the priority of the government.
Published in The Rising Nepal daily on 12 January 2022.
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