February 20: The government is delaying the introduction of trade logistics policy. Although the Ministry of Industry, Commerce and Supplies has been saying that it has done its homework to bring such a policy to facilitate trade for a long time, it has not yet been implemented as a policy. According to the ministry, although the draft of the trade logistics policy is already prepared, it is yet to be submitted to the cabinet for approval

Deputy Spokesperson of the Ministry of Industry, Urmila KC informed that although the ministry drafted a policy with the aim of organizing the internal distribution system, reducing business costs and strengthening supply chain management, it is yet to be presented in the cabinet for further process.

She said that the draft of the policy made by the ministry was discussed among the relevant agencies and further revision work as well is completed. KC said that a logistics policy is prepared for the first time with the aim of reducing trade costs and facilitating import and export, and it is ready to be submitted to the Council of Ministers.

“When the government changed, the ministry was devoid of a minister for a long time while the secretaries also changed, so it could not go to the cabinet. The draft is ready, now it will go to the cabinet soon,” she said.  The then secretary Dinesh Bhattarai, Baikuntha Aryal and others played an important role in drafting the logistics policy.

The purpose of preparing the logistics policy is to develop a targeted and integrated business logistics infrastructure, to organize the supply chain system, to strengthen good governance and research related to business logistics. The policy includes how to organize the transportation, customs, transport arrangements to the port, insurance, quarantine testing, warehouse, storage, distribution and transportation of goods imported to and exported from the country.

Topics such as how to reduce business costs and how to prepare a policy mechanism to prepare the necessary structure for that, and what the responsibilities of which agency will be are also included in the draft. The purpose of the policy is to facilitate and manage the overall supply system, trade, import and export, reduce costs, and make it competitive.

The policy mentions about reducing the cost of business by making transportation, storage and distribution organized, competitive, and provide goods to consumers at an affordable price. It emphasizes on making internal, sub-regional, regional and international trade organized and competitive. The policy aims to facilitate import and export as well as reduce trade costs. Last March, the government also asked for suggestions from the Policy Research Foundation for the trade logistics development policy. The foundation made a suggestion after consulting with the Export Promotion and Trade Facilitation Branch under the Ministry of Industry on June 7. The then Industry, Commerce and Supplies Minister Dilendra Prasad Badu also said that he would bring a business logistics development policy during his government.

The private sector was excited to know that the government is going to introduce a business logistics policy with the aim of reducing the cost of doing business. However, the delay of the government however is disappointing.

Prabhu Adhikari, the head of PAP Enterprises, which carries out cross-border exports, says that due to Nepal's laws, regulations, and bureaucratic red tape, logistics costs are also increasing, and policies should be implemented immediately. According to him, Nepal's law related to this sector is outdated. There is also a need for timely reform in the laws. He says that it is necessary for the government to pay attention to this end.