Private sector demands policy facilitation for jewellery business

 Kathmandu, Mar. 5

The private sector has demanded with the government to facilitate the gem and jewellery industry with the required policy facilitation.

The gold, silver, gem and jewellery business has high potential to boost exports, earn foreign currencies and create jobs in the local market but the government has shown indifference to extending support to this business, they said.

"It is unfortunate that the government has not listened to our demands of promoting the exports of jewellery by value addition. Gold and silver are not luxury goods but raw materials for our industry," said Jyotsana Shrestha, President of Nepal Gem and Jewellery Association (NEGJA) while speaking at its 17^th annual assembly on Saturday.

Entrepreneurs have long been demanding to lower customs duty on gold and silver to facilitate the industry, however, their demands have not been met.

Stating that gold and silver are not like other metals and their short supply could directly affect thousands of businesses across the country, and economy, Shrestha demanded repealing of the provision to manage 100 per cent cash margin while opening a letter of credit for gold and silver import.

The Nepal Rastra Bank has implemented the cash margin policy on LCs following the growing liquidity crisis.

"This sector has high potential to enhance exports, substitute imports, create jobs and earn much needed foreign currencies. However, exports are affected due to the scarcity of raw materials," she said.

Shrestha also stressed on technology transfer to increase the efficiency of the business in this sector. It has also contributed in the development of women entrepreneurship.

Speaking on the occasion, President of Federation of Nepal Gold and Silver Dealers Association, Manik Ratna Shakya, said that gold and silver are substitute for dollars but government has not understood the seriousness of the matter.

He also said that in the past 17 years, gold and silver business is at the same place and has not progressed much while entrepreneurs have been demanding the same with the government.

Vice-President of the Federation of Nepalese Chambers of Commerce and Industry, Anjan Shrestha said that the definition of productive and unproductive, and luxury goods is always twisted at the whim of the government.

"It has long been troubling the business community," he said.

President of Nepal Chamber of Commerce, Rajendra Malla, said that the disparity between the buying and selling of gold data is because of the refinement of old jewellery and its sale.

Arjun Prasad Pokharel, Secretary of the Ministry of Industry, Commerce and Supplies responded to the demands of the businesspersons and said that he was positive about addressing them.

"The gold and jewellery industry is about employment and culture as well so we need to promote it," he said.

He also pledged government support in technology transfer.

"I request the association to develop a draft of the working procedure to manage this business. I would do the necessary work from the government side," he said. 

  Published in The Rising Nepal daily on 6 March 2022.