August 21: Pashupati Murarka, former president of the Federation of Nepalese Chamber of Commerce and Industry and the director of Murarka Group has said that since Nepal is an underdeveloped country, there is a lot of potential for expansion of industries.

During an interview with New Business Age, he shared that the country has failed to reduce trade deficit which it could have done through increasing domestic production.

Murarka argued that since the country has become self-sufficient in cement even in such dire situation of trade deficit, the government should work to export cement as soon as possible.

He added that even after two months of announcing the budget for the current fiscal year, the government has not been able to implement the process of providing subsidy for cement export.

Murarka said that it is not easy to export cement from Nepal due to high cost of transportation and lack of adequate electricity. According to him, the country's trade deficit can be reduced to some extent by exporting cement if the government facilitates it. However, for that, the government should create an environment through policy reforms as only half of the cement produced in the country is consumed in Nepal while India can be a destination with great potential for cement export. As per him, if taxes are reduced, concessions are given in electricity tariff and export subsidies are given, Nepal's trade deficit can be reduced through export of cement.

India's Uttar Pradesh and Bihar can be good markets for Nepal's cement. He says that domestic cement industries are not running at their full capacity as they are unable in find the export market.

He said that limestone, the raw material used in the cement industry, can be found locally. But the market is small, so the government should facilitate the expansion of the market in India as Nepal has already invested heavily in the cement industry in a short period of time, says Murarka.

In the past, some industries which imported clinker from abroad are now producing clinker by themselves.

Murarka also said that the private sector is facing problems due to lack of long-term vision of the government. He complained that there are various obstacles in the development of the Nepal’s economy and the industrialists are still forced to face tax-related legal troubles.

Murarka said that he got involved in business without studying. His father rose to the top by running a cloth and rice business in Lahan. He was expert at accounting at a young age and expanded his father's traditional business and now operates more than 15 businesses under the Murarka Group. He says that Murarka Group stood on the foundation built by his grandfather and father with hard work.

Murarka Group, which is doing business in Biratnagar, Nepalganj, Bhairahawa and other areas, has its own history in business travel in Nepal. About 80 years ago, Murarka Group, which started from rice and cloth business, has now expanded its investment in insurance and banking sector as well as steel, cement, paints, refined oil, hydropower, automobiles, mobile phone industries etc. Murarka Group is operating Arghakhanchi cement plant in Bhairahawa with a capacity to produce 3,000 tons of cement per day. Nepal Hydro with a capacity of 4 megawatts and Modi Hydropower with a capacity of 20 megawatts are being constructed with investment from this group as well.

The group, which believes that it should invest only in areas where profits are guaranteed, is planning to expand its investment in various areas in the future, even though business expansion has been hindered due to lack of liquidity.