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]]>The Commerce body criticized the financial authority for abruptly increasing the interest rates, at a meeting with NRB Governor Chiranjibi Nepal.
“The banks have increased interest rates without considering the loan repayment capacity of the debtors, which will directly affect the cost of the ongoing projects while hitting hard the projects that are on pipeline,” reads FNCCI press statement.
The private sector has also demanded that NRB implement the following:
Currently, firms securing a loan of NPR 500 million and more have to receive a credit rating from the concerned agency and have to pay a commission charge of 0.1 percent for this.
FNCCI has asked the central bank to increase the minimum loan amount to NPR 1 billion and reduce the commission fee.
Additionally, the Commerce authority asked for promotion of e-commerce and waiving the customs duty on Tibet-imported goods in an event when the payment is made through bank drafts, letter of credit or TT.
On the occasion, FNCCI also expressed concern over the government’s slow progress on spending the country’s capital expenditure.
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]]>Addressing the 51st Annual general meeting of Makawanpur Chamber of Commerce and Industry, she opined that the private sector would lead Nepal towards prosperity and development.
In this regard, she called on the entire Nepali business community and entrepreneurs to take charge of the economic prosperity of the country.
“The under-construction fast-track and Nijgadh Airport are major catalysts of development in the District. Makawanpur has a big scope of tourism development,” she added.
Here it is noteworthy that the Nepali private sector had, earlier in November 2017 announced its wish list for the new Nepali Government.
In its wish list to the next Nepali administration, the Nepali private sector community had sought fight against corruption, cut in bank interest rates, and the promotion of small and medium enterprises and quality tourism.
Top on priority of the wish-list was a clear road map to avoid double taxation for more private sector investment.
“The private sector is expecting a commitment from the political parties that they will urge the government to prioritize the economic agenda. Entrepreneurs seek a clear provision to avoid multiple taxation while paying taxes to the local, provincial and central governments under the new federal system,” Rana said in an economic dialogue organized to release the wish-list.
“There is a need to tap private sector investment by ensuring an investment-friendly environment,” left leader Khadga Prasad Oli said in a statement while promising removal of multiple taxation system if left forms the next Nepali government.
Meanwhile, fund crunch in Nepal’s Rastra Bank (NRB) (over a period) is resulting in high interest rates for the Nepali private sector community.
According to NRB, the central bank has halted issuing loans because of the excessive money lending during the first five months of the current fiscal year that began in mid-July 2017.
Most of the banks have already reached the 80 percent loan-lending limits and are charging high interests for the new loans to manage the resources, particularly to the institutional depositors.
This move by the central bank is creating a concern for the country’s industrialists.
“Due to dramatic rise in interest rate, the production costs of industries is set to rise which will put Nepali products into competitive disadvantage against imported goods,” the Confederation of Nepalese Industries (CNI), an apex body representing medium and large sized industries in Nepal said in a statement.
According to CNI, unpredictability of interest rates will also hurt the private sector investment.
“The excessive lending of banks and the government’s failure to spend its budget well so far are mainly responsible for current liquidity crunch,” says NRB Spokesperson Narayan Prasad Paudel.
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]]>With an aim to boost the Nepal-Austria bilateral ties, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Austrian Federal Economic Chamber (AFEC) signed a Memorandum of Understanding (MoU) on October 31, 2017.
FNCCI President Bhawani Rana and AFEC Vice-President Richard Schenz signed the pact on behalf of both the nations and the two sides have also agreed to review the Nepal-Austria agreement formed in 1993.
The new collaboration will focus on enhancing private sector collaboration for promoting trade, commerce and technology transfer between the two countries.
“As the government has adopted a policy to create an investment-friendly environment, this agreement can benefit both countries through the exchange of knowledge, skills and technology,” said the Nepali Industry Minister Sunil Bahadur Thapa.
On the occasion, the Minister also sought Austrian investment in Nepal.
Meanwhile, Nepal’s Industry Secretary Yam Kumari Khatiwada informed that Nepal has declared tourism and infrastructure development as priority areas to facilitate Foreign Direct Investment in these sectors.
Gyanendra Lal Pradhan, Executive Committee Member of FNCCI, opined that the agreement would benefit Nepal by providing needed assistance from Austria in transportation and hydropower sectors.
Gyanendra also sought bilateral cooperation in the tourism sector to minimize the tourism costs through effective infrastructure development.
In response, Austrian Ambassador to Nepal Brigitte Oppinger-Walchshofer informed about Austrian entrepreneurs’ willingness towards investing in Nepal.
“The bilateral ties could help bolster the relationship in economic areas in the coming days,” she added.
Nepal and Austria have been enjoying cordial trade relations majorly in the areas of infrastructure development, hydropower, drinking water supply, eco-tourism development and conservation of ancient temples.
Patan Museum, Rolwaling eco-tourism, Garden of Dreams at Keshar Mahal of Kathmandu and Namche Small Hydroelectric Project are some of the notable Nepali projects completed in collaboration with Austria.
Nepal’s trade with Austria has been growing in the recent years.
According to the official data of the Trade and Export Promotion Centre, Nepal-Austria trade has grown two-fold from Rs 364.15 million to Rs 645.47 million during the 2012-16 period.
Nepal’s exports to Austria majorly include woolen carpets, paper and paper products, handicrafts, readymade garments, jewelry and silverware.
Whereas, machinery and parts and communication equipment form Nepal’s major imports from Austria.
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