Industries that can be self-sufficient should be encouraged: Chair Golyan

KATHMANDU: Pawan Golyan, Chair of the Confederation of Banks and Financial Institutions, has said that there is a need to protect and encourage industries that can be self-sustaining for import substitution.

Chair Golyan said this while speaking at the Nepal Business Summit-23 organized by the Confederation of Banks and Financial Institutions in Kathmandu on Sunday.

He stated that the policy of boosting imports and collecting money should be reversed in order for the country to become self-sufficient.

He stated that the customs support price should be maintained so that Nepali products are not imported at a lower price than the production price, in order to promote the sector that has become self-sufficient in terms of production, encourage self-sufficiency, and discourage low digitization.

He said the government should provide 50% electricity to export industries and 20% electricity to import substitution businesses in order to boost export industries’ competitiveness.

He voiced his belief that instead of prohibiting the import of luxury goods, imposing the customs rate on them would increase income while simultaneously limiting imports. He stated that if the system of issuing ID to Nepali people in India is implemented, it will be simple to create an account in Indian banks, and more than 5 billion in remittances can be legally carried into Nepal, which requires the government’s initiative and assistance.

“Most industrialists are facing this problem,” he said, adding that “it is necessary to protect and encourage industries and businesses that have become self-sufficient and can be used for import substitution.” In terms of production, the customs support price should be maintained in order to promote and support the sector that has become self-sufficient and self-sufficient, and to discourage the low level of digitization seen in the import of products of the same level.

He noted that in order to boost the competitiveness of industries that fall under the definition of export-oriented and import-substituting industries as defined by the Government of Nepal, electricity should be provided at a 50 percent discount to export-oriented (manufacturing) industries and a 20 percent discount to import-substituting industries.

“Instead of stopping the luxury goods, we should increase revenue by increasing the customs rate on them,” he stated. “This will also control the import and now the revenue will also get more help.” As soon as the system of providing ID to Nepali people in India is implemented, it will be simple to open an account in an Indian bank, and more than $5 billion in remittances can be legally sent into Nepal each year. Dear Prime Minister, there are other similar concerns that we can address. That requires the government’s initiative and facilitation.’

Chair Galyan further said that increasing exports through agriculture, energy, tourism, physical infrastructure development, and import substitution is critical for Nepal’s economic development.

He also stated that an industry focused on job creation is required. He stated that the government must work within the framework of the digital economy, specifically digital Nepal, while strengthening the information technology sector. He stated that in order to promote the agricultural sector, storage and market management, as well as the construction of agricultural processing centers, should be formed.

“It is necessary to develop agriculture, energy, tourism, physical infrastructure, increase exports by substituting imports, and establish employment-generating industries for Nepal’s economic development,” he stated. While developing the information technology sector, the government must work within the framework of the digital economy, or digital Nepal.’

He stated that in order to promote the agricultural sector, storage and market management, as well as the construction of agricultural processing centers, should be formed.

“As the majority of citizens earn their living from agriculture, it appears necessary to adopt the PPP model to provide agricultural infrastructure, distribution of fertilizers and seeds, availability of agricultural equipment, storage and transportation issues, and to simplify the expensive procurement process so that the local government can provide them at concessional rates,” he said.

He stated that the government should address the issues of agricultural infrastructure construction, fertilizer and seed distribution, agricultural equipment availability, storage, and transportation. In order to simplify the costly procurement of agricultural machines, the local government must use the PPP model to deliver them at subsidized rates, said Galyan.