Nepal's private sector keen to develop handicraft village

13 Jan '12

2 min read

The private sector in Nepal has expressed interest in developing an International Convention Centre and Handicraft Village in the country's capital Kathmandu.

Mr. Suraj Vaidya, President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said if the Government approves the private sector concept, FNCCI can pay Nepali Rs. 350 million to Nepal Industrial Development Corporation (NIDC) for developing a handicraft village on Himal Cement property.

Addressing the annual general meeting of Federation of Handicraft Association of Nepal, the FNCCI President said the Government is currently focusing more on revenue generation, rather than development of the private sector in the country. He suggested that the Government should shift its focus on developing the private sector as it would not only bring additional revenues but also help in employment generation.

Bikash Ratna Dhakwa, President of Federation of Handicraft Association of Nepal, also emphasized on the need for development of handicraft village and imparting more skills to handicraft artisans.

Nepal Chamber of Commerce (NCC) President Suresh Kumar Basnet urged the Government to give three percent cash incentive for exportable products in view of the prevailing high interest rates of banks that act as an hurdle for the exporters to compete in international markets.

He said the Government should make loans available at 4.5 percent interest to the private sector. He added that the private sector is currently paying interest at high rates of between 12 to 15 percent, which has made Nepali products expensive and the private companies are unable to compete in global markets.

Handicraft items are one of the major foreign exchange earners for Nepal. During the initial five months of Nepali fiscal year that started on July 16, 2012, handicraft exports from Nepal increased by 40.46 percent year-on-year.

Meanwhile, FNCCI and NCC have come together to prepare a draft export policy for Nepal's private sector. Mr. Vaidya said the country's private sector needs its own policy for promotion of its exports as the Government has so far not heard their pleas for development of private sector.

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