Setting the Economic Agenda
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The cover story of Newbiz February 2014 reflects the expectations of people from the new government. Political instability has always earned bad reputation among the private sector players. Everyone has blamed political instability that persistently remained the main factor behind the limping economy of the country and low economic growthsince the beginning of the armed insurgence. Few industries were closed while some sectors even reached on the brink of collapse due to this. Citing this same reason, big corporate houses shifted from the manufacturing sector to the service and mostly into the trading business. They have been waiting for the better political environment so that they can expand their business. The second episode of Constituent Assembly came with hope and as a milestone for ending political instability. The business confidence seems to be increasing lately. This increased confidence is a good sign for the economy but is also a sign of pressure on (and expectation from) the new government. Political parties have expressed commitment for economic development in their election manifestos. Those pre-election promises must be now reflected in the measures that the government takes.
This is said to be the time to prioritise economic agenda. For it the private sector and the government must go hand in hand. To meet the target of lifting the country from the least developed country status to the developing country status, there are a lot of things to be done. It is not only the private sector that is expecting from the new government but the general public is also waiting to see the fruits of development reach to them.
- Samiksha Sharma, Balkumari, Laitpur
Sugary Industry
It is good to know that the HP Agrawal Group is establishing sugar factory in Morang with Rs 1 billion investment. For general public, it means employment is being created and for local farmers their sugarcanes will get market. Establishment of sugar factories with large investments also means the country will get a step closer to self sustaining on sugar production. Best of luck to the investors!
- Subash Kumar Singh, Via Email
Service Industry for the Economy
Nepal Rastra Bank Governor recently asked the private sector to invest in the service industry (Newbiz February 2014). Probably it is one of the most productive sectors for Nepal as the manufacturing sector is said to be difficult because of various reasons. One of the serious issues is lack of electricity. Similarly, labour problems, high labour cost, and high lending rates make it difficult for Nepali manufacturing industries to produce at competitive price so that they can compete in the international market especially with the products from China and India. Production targeting only the domestic market may not lead to large scale growth of the sector though it may substitute imports. However, the service industry like tourism, education and health among others, cannot only contribute to the national GDP but can also establish service industry as the backbone of Nepali economy. And, as banks are searching for the productive sector to invest, it could be an appropriate sector.
- Sharad Simkhada, Baluwatar, Kathmandu
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