Nepal's industrial development over the decades has been slow, unable as it has been to motivate the private sector to invest in industrial ventures.

What's even more pathetic is that the few industries that were built with financial and technical assistance of friendly countries, such as the then USSR and China, and running very well were privatised immediately after multi-party democracy was ushered into the country in 1990. With the government no more in the mood to run industries as during the partyless Panchayat era, it did, however, introduce policies and schemes to encourage private sector investment in industries. Some two decades back, the government initiated the concept of the Special Economic Zone (SEZ), as practised in many developing countries, with the construction of the Bhairahawa SEZ. Along with Bhairahawa, 13 other locations have been identified for SEZs, with one more at Simara coming into operation anytime soon. However, it is a pity that Bhairahawa SEZ has not been able to attract any sizeable investment even decades after its opening, while SEZs at other locations have been labelled inappropriate for their operation and construction, according to a study.

According to the report published by Policy Research Institute (PRI), investors see no noticeable difference between investing in a SEZ and outside it.

The single-window service, which the governmentkeeps harping at investment forums to attract foreign direct investment, is largely absent in the SEZ. Infrastructural development within the SEZs is also lagging, with the SEZ Authority able to spend less than half of the allocated budget, raising questions aboutraising questions about its performance and efficacy. The long public procurement process, poor capacity of the administrative leadership and inability to implement the work plan have hindered infrastructural development of the SEZs, according to the PRI report. There are two SEZs close to the Indian border – at Bhairahawa and Simara – while the one at Panchkhal, 40 kilometres to the east of Kathmandu, is under construction. How the proposed SEZs at Jumla, Gorkha and Nuwakot will fare is a mute question as the report says they do not have the locational advantage for export promotion at a time when even Bhairahawa, located in an accessible place, has not been able to woo investors.

No country can progress without industrial development, and it is imperative that the private sector be motivated to invest in them, for which the SEZs have been established. As such, the construction of essential infrastructure in the SEZs must be completed at the earliest. The PRI has suggested looking for comparative advantages to establish product-specific economic zones to accelerate production and export of such products. This would require, among others, facilitating the delivery of raw materials to the site, while providing tax and duty exemptions and other non-monetary facilities without hassles to incentivise entrepreneurs. It is also important now to look beyond India to promote exports. By concentrating on country-specific products, it is possible to enhance exports, as Nepal did in the past by focusing exclusively on hand-woven woolen carpets and pashmina shawls.

Idle SEZs

Nepal's industrial development over the decades has been slow, unable as it has been to motivate the private sector to invest in industrial ventures.

What's even more pathetic is that the few industries that were built with financial and technical assistance of friendly countries, such as the then USSR and China, and running very well were privatised immediately after multi-party democracy was ushered into the country in 1990. With the government no more in the mood to run industries as during the partyless Panchayat era, it did, however, introduce policies and schemes to encourage private sector investment in industries. Some two decades back, the government initiated the concept of the Special Economic Zone (SEZ), as practised in many developing countries, with the construction of the Bhairahawa SEZ. Along with Bhairahawa, 13 other locations have been identified for SEZs, with one more at Simara coming into operation anytime soon. However, it is a pity that Bhairahawa SEZ has not been able to attract any sizeable investment even decades after its opening, while SEZs at other locations have been labelled inappropriate for their operation and construction, according to a study.

According to the report published by Policy Research Institute (PRI), investors see no noticeable difference between investing in a SEZ and outside it.

The single-window service, which the governmentkeeps harping at investment forums to attract foreign direct investment, is largely absent in the SEZ. Infrastructural development within the SEZs is also lagging, with the SEZ Authority able to spend less than half of the allocated budget, raising questions aboutraising questions about its performance and efficacy. The long public procurement process, poor capacity of the administrative leadership and inability to implement the work plan have hindered infrastructural development of the SEZs, according to the PRI report. There are two SEZs close to the Indian border – at Bhairahawa and Simara – while the one at Panchkhal, 40 kilometres to the east of Kathmandu, is under construction. How the proposed SEZs at Jumla, Gorkha and Nuwakot will fare is a mute question as the report says they do not have the locational advantage for export promotion at a time when even Bhairahawa, located in an accessible place, has not been able to woo investors.

No country can progress without industrial development, and it is imperative that the private sector be motivated to invest in them, for which the SEZs have been established. As such, the construction of essential infrastructure in the SEZs must be completed at the earliest. The PRI has suggested looking for comparative advantages to establish product-specific economic zones to accelerate production and export of such products. This would require, among others, facilitating the delivery of raw materials to the site, while providing tax and duty exemptions and other non-monetary facilities without hassles to incentivise entrepreneurs. It is also important now to look beyond India to promote exports. By concentrating on country-specific products, it is possible to enhance exports, as Nepal did in the past by focusing exclusively on hand-woven woolen carpets and pashmina shawls.

By concentrating on country-specific products, it is possible to enhance exports

VIP treatment

It is nothing new that the Ministry of Health and Population issues statements time and again about the possibility of providing medical treatment to the VIPs in the government hospitals. The ministry has also set criteria about the conditions under which the VIPs will be referred to treatment in foreign countries.

However, the so-called VIPs hardly abide by the government rules. Minister of Health and Population Mohan Bahadur Basnet on Monday said the government was working to ensure medical treatment of VIPs within the country. It is a sheer insult to the general people that people holding high-profile positions in the state organs get special preference while forcing millions of people to fend for themselves, when it comes to availing medical services even for simple ailments.

The latest instances of VIPs choosing to undergo medical treatment in foreign countries make a mockery of the ministry's promise of providing all health services within the country. Health services should not be provided to the people based on their socio-economic and political status. When high-profile people visit foreign countries for medical treatment, we must understand that the country's health system is not effective and reliable.

A version of this article appears in the print on July 12, 2023, of The Himalayan Times.