KATHMANDU, May 24: The government of Nepal has decided to implement a “Nepalese Prime Minister’s Production and Promotion Program” with the aim of increasing national production. The government, which is preparing the budget for the next financial year 2022/23, will include new programs in its policies and programs.
According to the Ministry of Industry, new programs have been introduced to reduce the trade deficit, protect local industries and increase productivity. The framework for this program was prepared by Nepalese Congress General Secretary and legislator Gagan Kumar Thapa.
Thapa said the program was decided in consultation with Prime Minister Sher Bahadur Deuba to increase domestic production for the economic prosperity of the country. He informed Republica that the new program was formulated to reduce the trade deficit, protect indigenous industries and increase production.
In order to reduce the trade deficit in the program, textiles, footwear, agriculture and food, forest products, herbs and medicines, construction and handicraft production have been given priority. “We prepared the program in consultation with the prime minister,” Thapa said. “We believe this will help reduce the growing trade deficit and increase industrial production and employment,” he said.
He said the program had been prepared in consultation with the prime minister and would be included in government policies and programs for the coming financial year. The Ministry of Finance will allocate a budget for this purpose. Although the project is in the name of the Prime Minister, it will remain under the supervision of the Ministry of Industry, Trade and Supply.
The main objectives of the program are to increase domestic and foreign investment in productive sectors, innovation in small and medium enterprises, increase in professional employment, expansion of the market for Nepalese products and increase production and consumption through value chain development.
According to Thapa, a mechanism will be set up under the Ministry of Industry to review the program. The program aims to increase the production of developing industries in Nepal to replace growing imports. The government plans to make it a national campaign. Development of physical infrastructure, business facilitation, development of competitive skills, improved access to new technologies will also progress under the program.
Additionally, Thapa said discussions have been held with the Ministry of Industry and the Ministry of Finance as they both play a major role in the success of the program. “We need to make time to encourage export promotion. The role of the Ministry of Finance is important for this,” Thapa said.
It was proposed to carry out timely strategic promotion through tax and customs exemptions and export subsidies, as well as provide competitive skills development, business facilitation, infrastructure construction physical commons, access to new technologies and the internalization and simplification of the process.