Kathmandu, April 24

The private sector has urged the government to impose both quantitative and qualitative restrictions on imports through the upcoming budget for 2019- 20 fiscal year.

Citing that Nepal is the only country which allows haphazard import of goods, private sector representatives said that the government should regulate import and allow the inflow of only qualitative and quantitative goods in the domestic market.

“The inflow of foreign goods without basic manufacturing and expiry details is rampant in Nepal, while Nepali goods have to face numerous export hurdles.

Similarly, we have not been able to raise country’s own productivity,” said Hari Bhakta Sharma, former president of the Confederation of Nepalese Industries while addressing a prebudget discussion programme organised by Nepal Rastra Bank (NRB) today.

Similarly, Sharma also stated that the government should identify new measures to fill financing gap in the country to achieve higher economic growth targets. Citing that easing the flow of cash is crucial to draw investment, he urged the government to develop proper budget expenditure mechanism and facilitate the private sector to borrow money from abroad.

Shekhar Golchha, senior vice-president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), said that it is crucial to bring down the cost of doing business in Nepal in a bid to draw foreign investment and achieve desirable economic and development goals. Similarly, Golchha mentioned that higher banking interest rate, bureaucratic and procedural hurdles are the other contemporary setback for carrying business in Nepal. “The budget should address all these issues,” he said.

Likewise, Kamlesh Kumar Agrawal, vice president of Nepal Chamber of Commerce, said that the new budget should focus on expansion of economic activities in the country.

On the occasion, Gyanendra Dhungana, president of Nepal Bankers’ Association, urged the government to introduce necessary measures through the budget to promote capital formation.

He also said that the government should introduce a mechanism whereby development budgets are spent effectively from the first month of the fiscal year.

Addressing queries of the participants, NRB Governor Chiranjivi Nepal said that NRB will incorporate their suggestions and submit its recommendations to the Ministry of Finance urging it to incorporate them in the budget. “As the country has been achieving improved economic growth rate in the past few years, the budget should ensure further expansion of the economy and stability of the economic growth,” said Nepal.