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Pvt sector’s role in trade balance stressed
KATHMANDU, DEC 16 - Expressing concern over the rising trade deficit of the country, Minister for Industry, Commerce and Supplies, Hari Bahadur Basnet today asked the private sector to play their due role in attaining the trade balance.
"Solution to the problem of widening trade gap lies in private sector and it should take benefits from increasing partnership with the government," he said.
Basnet was speaking at a programme organised to mark the 34th years of Trade Promotion Centre’s establishment on Monday.
According to the figure mentioned on the occasion, trade deficit of the country currently stands at Rs 80 billion, which is around 20 percent of the total national income.
He further noted that the competitiveness and efficiency of the Nepali private sector is at the lowest ebb. "It has also become very necessary for the concerned stakeholders to identify products and explore new markets," he said.
Dr Yubaraj Khatiwada, member of the National Planning Commission, urged review the role of Trade Promotion Centre adding that the centre should make contributions in areas of product development and market linkages.
He also stated that the private sector was shying off from various commitments that it made in areas like establishment of export-import (Ex-Im) bank. He was referring to the letter of intent that the central bank issued to the private sector to establishing the Ex-Im bank to promote the foreign trade about two years back.
"But nothing concrete has been realised in this direction so far," said Khatiwada. He further stated that the concerned stakeholders should focus on the increment of the trade volume rather than diversifying markets.
Dinesh Chandra Pyakurel, Secretary at the Ministry of Industry, Commerce and Supplies (MoICS), stated that the country has ample potentiality to increase trade even in the South Asian region itself.
He also stressed on the need to enhance monitoring of various activities undertaken by the institutions related to the promotion of trade and export. "There is also a need to effect structural and functional changes in these institutions to streamline the trade promotion activities," he said.
"In fact, MoICS has already constituted a task force to rationalise these institutions and redefine their responsibilities for the effective promotional activities," he said.
Pyakurel added that the government, in initiatives of Asian Development Bank (ADB), is conducting a study on ‘market access and product diversification’. "Also, initiatives have been taken to acquire equity fund from the ADB to establish export houses," he said.
Binod Bahadur Shrestha, President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), meanwhile, said that the federation would soon propose one product, one village concept to the government to ensure specialisation in production and ensure efficiency and competitiveness in manufacturing sector.
"We also have been strongly asking the government to establish display centres for developing producer-market linkages," he said.Posted on: 2003-12-17 04:01
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