Monday, January 7, 2019

Country-specific strategy on cards to boost export

Kathmandu, Jan. 7: With an aim of boosting the export trade of the country with specific products to the targeted markets, the Ministry of Industry, Commerce and Supplies (MoICS) is preparing a country-specific trade strategy. 

The Ministry has formed a team to study the export markets of the major trading partners of Nepal like India, the United States of America, China, European Union and Turkey.

“Our export markets have different characteristics and varied demand, therefore, we need to understand the nature of customers and their choice at first. At the same time, we must understand the trade-related policies of those countries,” Secretary at the MoICS Chandra Kumar Ghimire said at a programme organised to mark the 3rd Export Day in the Capital. 

Experts say that the government prepared National Trade Integration Strategy (NTIS) failed miserably as the document was prepared without proper understanding of the target markets. Likewise, the country is unable to get benefits from the various facilities given to Nepal by the developed markets – such as the Generalised System of Preference (GSP) facility by the USA, duty-free entry in China and India and ‘All but arms’ policy of the EU. 

Ghimire said that the government wanted to have the private sector perspectives while preparing the new strategies, therefore, it would hold discussions with the producers and exporters for their input. 
“We must double the export if we had to achieve the double-digit growth,” he said. 
Of every Rs. 100 trade, Nepal imports Rs. 94 and exports Rs. 6. 

In the first five months of the Fiscal Year 2018/19, the country’s trade deficit widened by 36.1 per cent to Rs. 569.5 billion compared to the same period the last fiscal. 
Nepal imported goods worth Rs. 452 billion and exported goods of Rs. 37.5 billion in that period. 

The country has failed to lessen the trade deficit with its major trade partners. According to the statistics of the Trade and Export Promotion Centre (TEPC), trade deficit with India, Germany, China and Bangladesh has been witnessing the same fate since the last half a decade with shrinking export and swelling imports. 

Minister for Industry, Commerce and Supplies Matrika Prasad Yadav assured that the government would work to support the manufacturing industries in the country. 
“A new policy will be devised to provide the export incentives to the producers, and it will be delivered in a hassle-free way,” he said. 

According to him, both the MoICS and Ministry of Finance are serious about boosting the production and export, and the government is positive about the establishing international standard labs. 

‘Export House will be established’

The MoICS has assured the business community that an ‘Export House’ would be established in the country as per latter’s demand. 

Secretary Ghimire urged the private sector to intensify the discussions about the new facility and promised that he would put his effort to include it in the budget of the next fiscal year 2019/2020. 

An Export House is a facility where micro and small entrepreneurs will exhibit and sell their products. 

Small producers cannot export their product and claim the incentives announced by the government, but this one spot facility will support a number such producers, said Shekhar Golchha, Senior Vice-President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). 

Senior Vice-President of Nepal Chamber of Commerce (NCC) Rajendra Malla said that duty draw-back facility should be provided to the customers of the Export House. 
“This will promote both the producers and the tourism,” he said. 

The programme was organised by Export Council of Nepal (ECON) to forge deeper collaborations between the private sector and government, said Surendra Kumar Shrestha, President of ECON.

Published in The Rising Nepal daily on 7 January 2019. 

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