Industrialists ask govt to focus on infrastructure development

KATHMANDU, June 2 :

Industrialists have asked the government to create investment friendly environment and prioritize development of infrastructures to enhance the competitiveness of Nepali products.

Talking to Republica, Hari Bhakta Sharma, senior vice-president of Confederation of Nepalese Industries (CNI), said that new budget should be able to reinvigorate the economic sector. “Development budget should be increased by reducing allocations in unproductive sectors,” he added.

Though industrial environment is worsening and unemployment is growing, industrialists are hopeful that Finance Minister Dr Ram Sharan Mahat would revive the economic sector.

Mahat had initiated first-tier economic reforms in the 1990s.

Pashupati Murarka, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said the government should address energy crisis that has hit the industrial sector to the core. “Energy crisis is affecting us in two ways. Our energy bill has increased five or six fold making our products expensive. This means we are not being able to compete with cheaper imported products,” added Murarka.

Sharma urged the government to adopt a new slogan ´Cut Down Import, Increase Local Production´ and devise policies and programs in line with the slogan.

Industrialists have huge expectations from this budget. They are hopeful that the parliament will endorse nearly two dozen essential laws related to economic and industrial sector, creating conducive business doing environment.

“The morale of industrialists is down at the moment. They can neither shut down business when they want, nor sack unwanted employees. Striking laborers are making things difficult for them,” Murarka said. Instead of becoming revenue-centric, he also said the new budget should be guided by the principle of creating new industries and employment generation to absorb youths coming into the job market. “Revenue will increase automatically if more industries are opened and more jobs are created,” he added.

The government plan of establishing Special Economic Zones (SEZs) is in limbo due to lack of SEZ laws and the sluggish progress in construction works in the SEZs.

Referring to Bhairahawa SEZ which has not been brought into operation citing legal vacuum, industrialists say the government is showing reluctance in SEZ development. They have also expressed concern over uncertainty surrounding Kathmandu-Nijgadh Fast Track and slow pace of transmission line projects.

WHAT INDUSTRIALISTS WANT

-- New budget should reinvigorate industrial

-- Address energy crisis to make Nepali products competitive

-- Introduce necessary laws at the earliest

-- Expedite SEZ development

-- Focus on opening new industries, job creation

Source: Republica