November 25: Minister of Finance Bishnu Paudel has said that the government would support the private sector at this time of unprecedented crisis. He made the remark while talking to a delegation from the Nepal Overseas Export Association (NOEA) at the Ministry on Nov 24.

The NOEA delegation had demanded the government declare a state of economic emergency to save industries and enterprises.

Describing the public and private sector as complementing each other, Paudel said that the any declaration of an emergency required deeper analysis. “We will look into the problems being faced by industrialists and entrepreneurs. We will make you feel that the government is with you,” Paudel said.

The delegation led by Him Bahadur Rawal, Acting Chairperson of NOEA had called on the finance minister to apprise him of the impact brought about by the current political deadlock on industrial enterprises, education, health and the day to day life of the people. The association suggested measures that could be taken to avert an economic crisis warning that the present day difficulties might push the economy to recession leading Nepal to become a failed state.

The delegation also suggested the ministry form a joint working group of government and private sector organisations with a view to identify the problems and find out short and long-term solutions.

The association also called on the government to facilitate the operation of industries based on indigenous raw materials by providing security, fuel and means of transportation of manufactured goods and to allow the private sector to import petroleum products and to exempt taxes including VAT untill the situation is normalised. 

The association urged Paudel to remove extra charges on the detained imported goods and to apply custom duties and other taxes on the basis of CIF value along with the exemption of VAT amounting to 25 percent of the interest paid to the financial institutions, to reduce by two percent in the interest of the loan issued to industrial enterprises, institute a provision to issue permits from commercial banks for import through TT of goods worth USD 100,000 and to require permits from the National Bank only for import of goods worth more than USD 100,000.

The association also requested the minister to create a congenial atmosphere for starting projects committed by the Investment Board, finalising the pending issues concerning industries through fast-track. The association also requested the government to pass the acts and laws concerning the economy already tabled at the legislative parliament.

Other members of the delegation included Former Chairperson of the association Ashok Kumar Agrawal, Vice-chairperson Sunil Kumar Dhanuk (Bansal), Secretary Amit Agrawal and working committee members Madan Mittal and Suresh Kumar Agrawal.