Govt mulls new industrial Act
KATHMANDU:
Minister of Industry Karna Bahadur Thapa said that the government is planning to introduce a new Industrial Enterprise Act, prioritising small-scale industries and independent businesses, to create a favourable environment for entrepreneurs operating on a small scale.
Stating that since political protests and strikes have been hitting the industrial sector hard for years, the minister assured that once the Act is
enforced, it would legally ban such hindrances. He informed that the Cabinet is now reviewing the proposed Act.
“This Act will assure a favourable environment for investors to conduct their businesses and run industries more conveniently,” said Thapa. Speaking at a roundtable discussion on informal sector enterprises jointly organised today by Nepal-Kuwait Chamber of Commerce and Industry (NKCCI) and International Society for Small and Medium Enterprises (ISSME), Minister Thapa highlighted that both small- and large-scale industries need to be accorded high priority in the government’s programmes.
The minister also informed that the government is trying to promote women entrepreneurs in both rural and urban areas through effective management of different funds established to benefit small and medium scale industries.
During the discussion, representatives from various small-scale industries and informal sector enterprises demanded that the government conduct a national survey on the size and structure of these enterprises. They lamented that the government has not yet realised the significance of informal economic activities in Nepal.
“It is very unfortunate that till date policymakers have not given due consideration to the role that informal sector enterprises play in Nepal,” said Surendra Bir Malakar, president of NKCCI and vice-president of ISSME. Malakar asked the government to help foster informal sector enterprises by bringing them under the ambit of formal sector through policy intervention.
According to an International Labour Organisation (ILO) report, more than 70 per cent of Nepal’s economically active population depend on the informal sector for employment. However, this sector fails to identify better markets and lacks proper skills and education to promote their enterprises.
“Informal sector enterprises are the key to the country’s economy that accounts for more than half of the GDP,” said Sunil D Sharma, general
secretary of ISSME. “These entrepreneurs should be provided with need-based skills and education to benefit from the changing market trends.”
Entrepreneurs urged the government to facilitate easy access to loans for all, especially for those living outside Kathmandu Valley as most of the informal sector enterprises based on agriculture are from rural areas. “Financial institutions do not provide loans on mortgages that are out of the Valley,” said Suresh Pradhan, president of Federation of Nepal Cottage and Small Industries. “The government should bring policies to facilitate loans for entrepreneurs operating in rural areas.”
Source: THT
