‘We hope our matured political leadership is aware about the worsening economic situation’

The country has been suffering from the ongoing political protest in the Tarai region for the last 53 days. The economy which was gradually picking up pace towards recovery after the devastating earthquakes has been shattered due to the protest, which has severely hit industrial production, and tourism and consumption sectors. Operators of life-line services like public transportation have been facing difficulties in providing services due to the scarcity of fuel. Pashupati Murarka, President of the Federation of Nepalese Chambers of Commerce and Industry, opines that the prolonged protest in the Tarai has severely hit the country’s economy. Murarka states that the government and agitating parties need to resolve the dispute through dialogue with both sides being flexible in their stance. Pushpa Raj Acharya of The Himalayan Times caught up with Murarka, to know about what the private sector has been doing to create pressure on the government and agitating forces to end the dispute. Excerpts:

The prolonged protest in the Tarai has been ruining the country’s economy and the private sector is being forced to bear losses worth billions of rupees. In this context, why has the largest umbrella body of the private sector not been creating any pressure on the government and agitating parties to end the dispute at the earliest?

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has been holding talks with both sides — the government and agitating parties — and requesting them to resolve the issues at the earliest. We all know that the issues will not be settled without serious dialogue between the government and the agitating parties. Both sides need to be flexible and compromise on certain aspects to settle the dispute in a win-win situation. The constitution needs to be owned by everyone in the country and it is the responsibility of the government to make it happen. Meanwhile, the protesting parties should also compromise on certain issues to settle the dispute through dialogue.

You have said that FNCCI is in touch with both sides. How serious do you feel are both the sides in settling the issues through dialogue?

I feel that both sides till date have not entered into talks with the intensity that is required to resolve the issues. The protest in the Tarai has been continuing since the last 53 days and the people of the Tarai too have been facing a lot of difficulties. In this regard, the government is not seen to be sensitive towards the people of the Tarai.  Now after the obstruction in the movement of vehicles from India to Nepal for the last 11 days, Kathmandu and other parts of the country have starting suffering due to the scarcity of fuel and other essential commodities. During meetings with the government and the leaders of the agitating parties, we have clearly stated that both sides have to act responsibly for the people and for the country as a whole.

From the very beginning, FNCCI has been lobbying for a bandh and strike-free Nepal. Has FNCCI spoken to protesting parties on this issue?

We have been repeatedly talking to the agitating parties to change their way of protest and build a conducive environment for the private sector to conduct business. We had also lobbied with the lawmakers and provided suggestions on the draft constitution to include the provision of compensation from the concerned party that organises strikes and bandhs, but it was not incorporated in the constitution. There are other options available to create pressure on the government but the protesting parties have not been convinced with us and the continued strikes and bandhs have shattered the country’s economy, which has just emerged from the decade-long conflict and long political transition. The economy which was gradually gathering pace after the devastating earthquakes has again lost momentum. FNCCI itself doe not have any authority or role to play in settling the issues; we can only facilitate the government and agitating parties for dialogue. And we hope that our matured political leadership is aware about the worsening situation of the country’s economy and difficulty in sustaining livelihoods. We expect the problems to be sorted out as soon as possible.

There is obstruction in the movement of vehicles from India to Nepal and many say that it is sort of an unannounced blockade. What is the private sector’s view on this?

The private sector has always been in favour of trade facilitation and strong economic ties with emerging economies India and China. Obstruction in the movement of vehicles laden with essential commodities and industrial raw materials has caused short-supply. It has affected industrial production. We have been talking about facilitating trade during bilateral, regional and multi-lateral forums; we have to act accordingly. This is an era of gl economists obalisation and almost all the countries in the world have been focusing on how they can be competitive in production. In this context, we cannot

imagine such a situation. Regarding the current obstructions, neighbouring India has been repeatedly saying that this situation has arisen due to the protest in the Tarai. So I think the ball is in our court and our political leadership has to resolve the problem first.

The port charge and the detention cost levied by shipping liners (on containers) has been increasing by the day as the cargo is stuck at the Kolkata port since long due to the protest in the Tarai. Export too has been about nil. Could you please shed light on the amount of loss that the private sector has had to bear with?

The loss that the private sector has been facing due to the ongoing protest in the Tarai is unimaginable. In some cases, detention and port charges have gone up so high that they have become costlier than the cost of the cargo imported. About 70,000 tonnes of cargo is stuck at Kolkata port. Some of the traders had imported edible oil through chartered ships and tanks available at Kolkata port are now fully occupied and it is difficult to unload the oil; importers have to pay $25,000 per day as rent of the chartered ship till the time the oil is unloaded. A similar situation is sure to arise in other consignments as the port trust has already said that there is no space to park the Nepal-bound cargo in the port yard. Some of the perishable goods need to be disposed from the trucks that are stranded at the border points and also at the port. The Consulate General’s Office in Kolkata has already sent a letter to Nepal Rastra Bank to halt the issuance of letters of credit till the movement of vehicles normalises. So I must say that it has a cascading effect in the country’s economy. The protest has affected everybody — from a taxi driver to the commercial banks — equally.