July 28: The government is preparing to adopt an integrated business strategy for sustainable development of the economy. The Ministry of Industry, Commerce and Supplies has initiated the process of taking suggestions from stakeholders to finalize the 'Nepal Trade Integration Strategy 2079'.

While Nepal is preparing to be upgraded from underdeveloped to developing country in the next few years, the government is preparing an integrated strategy, considering opportunities and challenges.

Such strategy is going to be formulated during the Fifteenth Development Plan (2077-2081) with the objective of building an independent and socialist-oriented economy.

The preliminary strategy prepared by the government was discussed in Birgunj on Wednesday. The ministry said that the integrated strategy will be finalized after taking suggestions from stakeholders. The government prepared a draft of the strategy with the support of the European Union, Nepal Trade and Investment Program and the Investment Program Facility.

An expert group led by former Finance Secretary Rameshwar Khanal prepared the draft of the strategy. Khanal informed that the strategy focuses on the issue of the impact on foreign trade and how to solve it when Nepal transitions to the list of developing countries.

After Nepal's upgrade, there will be no significant difference in trade with India, says Khanal. Experts say that the main purpose of the strategy is to find solutions to challenges and opportunities in trade with the European Union and the United States. Currently, the ratio of gross domestic product (GDP) and foreign trade is 39.3 percent, and the target is to increase it to 55 percent.

Khanal informed that the ratio of exports of goods and services to GDP is 6.61 percent and the goal is to increase it to 20 percent. The strategy also emphasizes on studying what goods are being imported by other countries and from where, in order to increase exports and the possibility of Nepal exporting such goods to those countries.

The government is planning to strengthen economic diplomacy to increase exports. At present, diplomatic missions and ambassadors in various countries will be mobilized to attract export trade and investment.

The government's policy is to build business-supporting infrastructure and strengthen food security.

Pushpa Sharma, a member of the expert group, said that plans are being made to this end.

Improving quality and industrial standards will also be emphasized.

Another expert, Rojan Bajracharya, said that while modernizing the production process, import substitution and export enhancement will be carried out strategically.

Ganesh Prasad Lath, president of Madhes Province chapter of FNCCI, said that the efficiency of the business strategy depends on its successful implementation.

Subodh Kumar Gupta, president of Birganj Chamber of Commerce and Industry, Mohan Sharma, president of Jitpur-Simara Chamber of Commerce and Industry, leather industrialist Mohammad Junaid Iftkhan and others said that the business strategy should focus on reducing the cost of production. They claimed that unless the cost of domestic production is cheap, it cannot survive in the domestic market, let alone exports.