PM urges for mass production to boost international trade

Kathmandu, Jan. 30

Prime Minister KP Sharma Oli has urged industrialists and entrepreneurs to increase production on a large scale to enhance exports to neighbouring India, China, and other international markets.

Speaking at the inauguration ceremony of the 8th International Chamber Expo, organised by the Nepal Chamber of Commerce at Bhrikutimandap on Thursday, Prime Minister Oli emphasised the need for mass production and market knowledge to expand trade.

He stated that Nepal would move forward at a faster pace as infrastructure development continues.

Acknowledging the negative impact of political instability on the economy, he said that with the formation of the new government, Nepal aims to upgrade to a middle-income country by 2026.

Highlighting infrastructure development initiatives, he mentioned plans to transform Tribhuvan International Airport into a boutique airport, expand other airports, and develop waterways for access to the sea.

He clarified that these efforts were aimed at advancing industrial and commercial growth and ensuring national prosperity.

“The trade data we currently compile is not entirely accurate. Purchasing or importing goods solely for consumption cannot be considered trade,” said Prime Minister Oli, adding, "We must utilise science and technology to enhance various social activities and production. The current government is deeply committed to economic development.”

Encouraging collective efforts to elevate Nepal from a low-income country, Prime Minister Oli expressed happiness that the Chamber Expo was held with the goal of personal and national development.

Speaking at the event, Minister for Communications and Information Technology, Prithvi Subba Gurung, said that the government would establish clear policies and legal frameworks for artificial intelligence and that the ordinances introduced would be beneficial for the commercial development of the IT sector.

Kamlesh Kumar Agrawal, President of the Nepal Chamber of Commerce, expressed optimism that the recently introduced ordinances would have a positive impact on the industrial and business sectors.

The Chamber Expo, featuring 125 stalls from Nepal, India, Pakistan, and other countries, will continue until February 3.

At this year’s Chamber Expo, the IT sector has emerged as a major attraction. Nepal has the potential to become a global IT destination, and now is the time to work towards achieving that goal, said Agrawal.

According to him, with low-cost human resources, an adequate power supply for data centres and AI infrastructure, and strategic geographic location, Nepal holds immense opportunities for IT development. Additionally, the country has great potential to export IT-based products to large neighbouring markets like India and China.

"To boost Nepal’s domestic IT industry, it is essential to encourage local companies to produce software, AI solutions, and other tech-based products for domestic consumption," Agrawal said.

He maintained that the participation of the international business community at the expo provides a valuable opportunity for Nepali entrepreneurs and industrialists to closely observe global economic activities, cutting-edge technologies, and new trade management trends. It is expected to help enhance production capacity and promote exports.

Businesspeople from various countries including Nepal, Bangladesh, India, China, Thailand, UAE, South Korea, Malaysia and Pakistan are participating in the exhibition.

As in previous years, this year’s expo features exhibitions of agricultural products, handicrafts, textiles, and various industrial goods. Visitors will also find a diverse range of items, including herbal products, Ayurvedic items, and locally produced home décor and crafts.

The expo will showcase products not only from Nepal but also from India, Pakistan, Thailand, South Korea, China, Bangladesh, and other countries.

In the first six months of the current fiscal year, Nepal recorded a trade deficit of Rs. 723 billion. "The country remains heavily reliant on imports, highlighting the urgent need to increase domestic production and productivity across all economic sectors. Import substitution and export promotion are crucial steps toward achieving self-reliance," said Agrawal.

To support Nepal’s growing trade sector, he demanded that the government must immediately take steps to establish an international-standard exhibition centre. 

 Published in The Rising Nepal daily on 31 January 2025.