”In the absence of an industrial environment, industrialists and businessmen are oriented towards trade rather than production”

Chaitra 18, 2081

Bhawani Rana

”In the absence of an industrial environment, industrialists and businessmen are oriented towards trade rather than production”

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The private sector is always working together with the government. The private sector is fighting for the economic development of the country. At the time of democracy, the environment in the private sector was encouraging. Opportunities were created in many sectors including tourism, airlines, services, media and manufacturing. International companies also entered at that time. The production sector had increased by 80 to 90 percent.

In recent times, people's war, earthquake and corona epidemic also happened. Due to the good monetary policy during the corona epidemic, our economy was able to sustain . But now the private sector has become a disaster. Two big parties have formed the government by giving priority to the economy for the economic development of the country. The private sector was enthusiastic. Private sector-friendly laws came from some ordinances but could not come about land . However, the situation in the private sector is down and difficult.

Although the market is growing in the world, it is shrinking in Nepal. There has been a difference in demand and supply. On the one hand, banks are waiting for customers to give loans and nobody is going to take loans . Private sector has not been able to pay the loan taken earlier even by selling the real estate . How to get a new loan when it is difficult to operate a business?

On the other hand, questions have been raised about the implementation of laws, laws and policies from the ordinance. We bring good policies but the implementation part is very weak . Shrinking market, unstable policy has not created a private sector-friendly environment . When the government brings the policy, it should be stable for at least 15 to 20 years . And, when changing the policy, businessmen who have invested in that area should also be informed . For example, the issue of casino operation in the old hotels on the Nepal-India border came up. At one time, all the businessmen panicked when they said that a distance of 5 km was required to operate a casino. We have taken the initiative to arrange for the casino to operate at zero km or one km . When discussing Nepal, it was said that it was because of India's security concerns, but when we talked to the Indian embassy, ​​we found out that there is no security problem. A policy should be stable and not for a single practitioner or for a period of time .

Lately, investment has not come from India and international companies, which is becoming the interest of the government and the private sector . Despite the Indian government's investment in water resources, the private sector has not been able to invest . There is a need to improve our policy, it is also necessary to strengthen the implementation side . There are many problems due to lack of coordination between the government, state and municipality. There has to be uniformity in that too . Federalism was released to decentralize power and development. But it has not been in accordance with its purpose . Now businessmen are in a position to invest or not. Investment has not been able to expand due to whether investment will sink, whether policy will be changed or whether it will not be implemented.

The market is shrinking, industries are operating at 30 to 40 percent capacity due to 12 to 14 hour load shedding in industrial corridors. Industry-business operation cost in Nepal is expensive . It had to be made cheaper. If that happens, not only domestic but also external investment will come in . 

In any period of Nepal, the private sector has been driving the country's economy . The private sector has been in a wait-and-see situation for a long time. When the government changes, wait to see if something friendly to the private sector will come. The private sector is still waiting and watching to continue and promote its business. "Frustration" has come from time to time in the private sector. 

The private sector invests everything in the country so that there is production, economic activity, and revenue for the country. But lately, there has been disappointment in the private sector. The time has come that the work is not completed without someone doing the work . It will be difficult if you don't 'tie up' with someone to do your work, to continue the business, to keep it from sinking and to do new work . For example, during the People's War, many businessmen went to the Maoists to save their businesses. The private sector cannot go to the streets and protest. Despite the movement and opposition to guns, there is now a tendency for the private sector to take someone along with them to do their work. We are seeing a tendency for those who have access to work, and those who do not have access to work. 

The private sector and the people have sought change with a stable government . Policies are implemented, development plans are initiated. Even if Bhairahawa Airport is built, there is no flight, let us come up with a solid policy to operate it regularly. Compulsorily bring the policy of flying workers from Bhairahawa. Let's also inspire the people of India's UP to invest in Lumbini's industrial sector . The number of suicides is increasing due to business failure or drowning. Therefore, the private sector has to ask someone to save their business . So good governance is very important . For that, it is necessary to cooperate with the government and the private sector. 

In Nepal, possibilities are possibilities. We have made leaps and bounds in energy. Even if the private sector does productive industries, there is no environment and the market has shrunk, so we have not been able to consume in Nepal. The manufacturing industry has not been able to flourish due to the increase in the number of young people going abroad and our demand and supply not matching. We have not been able to go to the export market. We had to process the herbs in Nepal and create an environment to sell them in dollars. How long to sell in Varuma ? The lack of an integrated lab or what else there is, the government should pay attention to. The private sector has gone into business because it is difficult to operate the manufacturing industry . Due to policy, investment expansion, market is going towards business . Due to lack of industrial environment, industry-business is being oriented towards trade rather than production.

(Thoughts expressed by Rana, former president of the Federation of Nepalese Chamber of Commerce and Industry in the fourth session of the interactive program on 'Lumbini's Power', 'Economy and Politics in Confusion')

Bhawani

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