CNI asks MoF to assess the impact of Indian budget

Kathmandu, February 19

The Confederation of Nepalese Industries (CNI) has urged the government to assess the impact of recently unveiled Indian budget on Nepal’s economy and ensure that domestic private sector grows in a competitive environment.

India has reduced its aid to Nepal for fiscal year 2020- 21 through the budget presented by Indian Finance Minister Nirmala Sitharaman on February 1.

A CNI delegation led by its President Satish Kumar More today met the newly appointed Finance Secretary Sishir Kumar Dhungana and said that an assessment of the Indian budget was necessary as India has made several changes on issues ranging from foreign aid to taxes.

Along with this, the CNI delegation also urged the Ministry of Finance (MoF) to assess the impact of coronavirus on trade, tourism and the entire economy of Nepal.

“As Nepal’s trade with China is at a complete standstill and domestic industries have not been able to import necessary raw materials from the northern neighbour, the government should analyse its impact on industrial sector and the entire economy and take necessary action,” said More.

In the context of falling imports and rising exports, the CNI delegation also urged Dhungana to further promote production and exports to maintain trade balance.

Responding to the CNI delegation, Dhungana informed that a separate committee at the Ministry of Finance has been conducting the assessment of Indian budget and its impact on Nepal.

“The committee will submit its report within a few days and steps will be taken based on the recommendations,” he said.

Similarly, Dhungana also informed that necessary discussion with the line ministries is undergoing to minimise the adverse impact of spread of coronavirus in China on the country’s trade, industry and the service sector.

Dhungana also assured that export-oriented industries will be promoted and facilitated through government’s policy.