NYC Talks: Emphasis on long-term policy for export promotion

KATHMANDU: Participants of a panel discussion organised by Nepal Youth Chamber (NYC), a committee under Nepal Chamber of Commerce, stressed the need to make export promotion and import systematic. The panel discussion on the current economic situation of Nepal and its challenges and opportunities was organised in the capital city on Tuesday to help understand the current economic scenario and challenges that the country faces with depleting foreign reserves and increasing trade deficit. Speaking on the occasion, former Finance Minister Yubaraj Khatiwada said the main reason for the economy not getting back on track was policy instability. He opined there should be effective coordination between the Ministry of Finance, Ministry of Industry, Commerce and Supplies and the Nepal Rastra Bank on the issues of discouraging import and promoting export. He suggested that short-term and long-term policies should be formulated to reduce imports and promote exports. He said there was still a risky situation in the country's economy. According to Khatiwada, rumours of rising inflation along with shortage of consumer goods have created unnecessary panic in the market. Khatiwada said that the private sector which significantly contributes to the national economy should also be responsible. He stressed the need to bring real estate business under the tax net. If unnecessary remittances in education, hundi transaction and Nepalis' visit to foreign countries is stopped to some extent, it will have a positive impact on foreign exchange reserves, Khatiwada expressed. Former minister Khatiwada said positive signs have been witnessed in the economy lately with economic growth of 5.8%. On the occasion, Deepak Shrestha, Vice President of Nepal Chamber of Commerce alleged that the government has arbitrarily stopped the import of goods. He reiterated that the private sector has urged the government to systematise the import instead of controlling it. According to Shrestha, the government should take a decision only after studying and holding discussions with the private sector on the items not to be allowed to import. He said that the state policy should be effective to promote exports by increasing domestic production. [caption id="attachment_22986" align="alignnone" width="1000"] Participants at a panel discussion organised by Nepal Youth Chamber (NYC), a committee under Nepal Chamber of Commerce, pose for a photo in Kathmandu, on Tuesday, May 3, 2022.[/caption] Addressing the programme, Govinda Bahadur Karki, joint secretary at the Ministry of Commerce and Supplies, said that the import of luxury goods was controlled after it started affecting the foreign exchange reserves. However, it is short-lived, he explained. He asserted that the government is not against the private sector, and added the government has stopped imports of some items to reduce trade deficit and encourage domestic production. Likewise, economist Biswash Gauchan, Chief Executive Officer of NMB Bank Sunil Kumar KC and others said the pressure on the national economy was short-lived. NYC president Dipesh Ratna Tuladhar said that they were trying to draw the attention of the government and stakeholders as there was pressure on all sectors of the economy at once. Kishan CPVC Pipes and Fittings sponsored the discussion panel. READ ALSO:

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