NRB assures providing sufficient gold to entrepreneurs

Kathmandu, Aug. 19: Governor of the Nepal Rastra Bank (NRB) Dr. Chiranjibi Nepal has said that the central bank would provide the gold needed for the industry.

“The gems and jewellery entrepreneurs should establish an export house promote and conduct the export of the gold jewelleries. The Monetary Policy for the current fiscal year has already announced to provide additional facilities to the exporters,” he said while speaking at the 14^th Annual general Assembly of the Nepal Gem and Jewellery Association (NGJA).

Establish an export house and come to the central bank with your demand, you will get enough raw materials. But we are careful about the balance of payment (BOP), he said.

He also urged the various associations related to the gold, silver and gems to be united and have a single say on the issues related to the sector.

“There are five five business associations in gold, silver and gems business. I request you to be one,” he said.

Immediate Past President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pashupati Murarka said that gold supply was not sufficient for almost 10,000 gold and jewellery shops across the country.

“Even if 2 gram gold is provided to each of them, about 20 kg is needed,” he said.  

Acting President of FNCCI Shekhar Golchha also said that exporters should be allowed to import gold as raw material. 

“NRB can import itself, but the entrepreneurs should have enough gold to run their business,” he said.

Entrepreneurs also said that gold jewellery has huge potential of export. Therefore the government should facilitate it and smuggling of gold must be curbed.

About 52,000 families are associated with jem and jewellery industry.

Executive Director of the NRB Bhisma Raj Dhungana said that the central bank was ready to provide as much gold as necessary to promote the export gold items.

“We want the Association to recommend the required amount. You should establish an export house and urge the government for the duty draw back and safe storage of the jewelleries at the custom offices,” he said.

President of the Association urged the government to remove the provision which forces the gold entrepreneurs to open account in all the banks.

“The account at one or two banks should be enough for gold transaction. Similarly, the provision of payment through the cheque in the purchase of gold above Rs. 50,000 should be changed to Rs. 500,000,” she said.

Published in The Rising Nepal daily on 20 August 2018.