Lalitpur, Nov. 25
At a time when the confidence of
the private sector has hit the lowest ebb, it has demanded that the government should
implement the interventions announced in the budget to revitalise the
industrial sector in the country.
Speaking at a programme organised
on the occasion of the 8th National Industry Day on Friday, the business
community urged the government to focus on the development of trade
infrastructure, facilitate in obtaining
easy and concessional financing, and implement the budget provisions announced
to benefit businesses and industries.
Shekhar Golchha, president of the
Federation of Nepalese Chambers of Commerce and Industry, said that the
business confidence in the country has gone down to record low due to liquidity
crisis, ever climbing bank interest rate and the external sector pressure.
But according to him, although
the problems were always there, no governments ever tried to address them.
"We are doomed to face the same problems in the last eight decades and are
still struggling to find solutions to them. This is unfortunate," he said.
He also maintained that the revenue-oriented
mindset in the government is preventing the country from
becoming a growth-oriented and employment-oriented nation.
"The government should offer
subsidy on the bank interest and other areas to the industries contributing to
export, employment and value addition," he said.
Vishnu Kumar Agrawal, President
of Confederation of Nepalese Industries (CNI), stated that the private sector
wanted the government to implement the interventions announced in the budget to
revitalise the industrial sector in the country.
"The private sector aims at
increasing the industrial contribution to economy to 22 per cent by 2025, but
the condition has been continuously worsening so we doubt on achieving this
target," he said while adding that market of domestically produced goods
ranging from steel rods to FMCG has drastically gone down. Industrialists have
postponed the plans to expand the capacity of their enterprises, he
informed.
Stating that the exorbitant land
price has also discouraged the industrialists, Agrawal suggested the government
to hand over the proposed industrial zones to the private sector for their
smooth management.
According to him, export
incentives should also be given on products like tobacco, talcum powder and
liquor.
Chairman of Industry Committee at
the FNCCI Bharat Raj Acharya said that 29 laws govern the business and industry
sector. Including directives, work procedures and other guidelines of the
government they have to spend a tremendous amount of time in auditing their
activities to see if they are running in accordance with law.
"These laws should be
synthesised, revised and scrapped with thorough review," he said, and
urged the government to begin a high-level national initiative for industrial
sustainability.
Umesh Prasad Singh, President of
the Federation of Nepalese Cottage and Small Industries (FNCSI), said that the
bureaucracy doesn't have mindset to promote and support to the cottage and
small industry. Micro, cottage and small industries are expecting government
support in scaling up their enterprises, he said.
Dr. Toya Narayan Gyawali,
Secretary of Industry, said that forest governance in Nepal is yet to be
investment-friendly, issues like mining and infrastructure development are
directly connected with the forests and there are still policy hurdles. We need
to address those constraints, he stated.
According to him, the leading
stakeholders like the Ministry of Forest, Ministry of Labour, Ministry of
Infrastructure, and Ministry of Finance should hold regular dialogue to reform
the business and investment environment.
We need to be prepared for the
challenges that the country and entrepreneurs have to face after the country's
graduation from the Least Developed Country in 2026. "This is our priority
and we have already begun to work for possible steps and solutions," he
said.
Chief Secretary, Shankar Das
Bairagi, said that the greatest problem in Nepal is the poor implementation of
policies and programmes. "Therefore, I would like to appeal to all
stakeholders to implement the government announced policies," he said.
Likewise, Toyam Raya, Secretary
of Commerce, said that the country needed to export goods with value addition,
not raw.
"Illegal imports have
negatively impacted the businesses in Nepal as the smuggled goods are cheaper
than about 45 per cent," he said.
Published in The Rising Nepal daily on 26 November 2022.