Nepal | May 30, 2020

Experts urge govt to promote SMEs for economic transformation

Himalayan News Service
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Kathmandu, January 11

Experts have opined that the government should promote small and medium enterprises (SMEs) for economic transformation and to create economic synergy in the country. They also stated that the government should make policy reforms for registration of industries to promote SMEs at the grassroots level.

In an interaction programme jointly organised by the Federation of Small and Medium Enterprises Nepal (FSME) and Society of Economic Journalists Nepal, former finance minister Shankar Prasad Koirala stated that SMEs can play an effective role in simultaneously alleviating poverty and boosting the production base.

Stating that the country is lagging behind and is over-dependent on imports due to lack of strong production base in the country, Koirala said that promotion of SMEs will bring about synergy in the economy.

Koirala also suggested the government to support innovation, development of infrastructure, technology, concessional financing, tax incentives and linking them to the value chain of big production units for accelerated and sustainable economic growth.

Similarly, Khom Raj Kharel, secretary of Nepal Economic Association, stated that the government should form an SME policy in the country to promote the sector. “As we are lacking proper policy to encourage SMEs in the country, our prime focus should be to form a special policy.”

Economist Ramesh Paudel opined that the government should enable SMEs for sustainable economic growth, employment generation and boost productivity. Underlining the role of the private sector for economic transformation, Paudel said the role of the private sector will also be crucial in promoting SMEs in the country.

Likewise, Vice President of FSME Gopal Tiwari stated that SMEs have an important role in bringing about accelerated economic growth, boosting productivity and generating employment in the country. FSME also drew the attention of the concerned stakeholders towards the need to establish cottage industries for the deprived sector.

The Industrial Enterprises Act 2016 has categorised SMEs as having paid-up capital of up to Rs 100 million. Similarly, the companies having paid-up capital of Rs 100 million to Rs 250 million have been classified as medium industries and large-scale companies are categorised as having paid-up capital of over Rs 250 million.

A version of this article appears in print on January 12, 2018 of The Himalayan Times.

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