Connect with us

Economy

Business community demands slash in interest rate

Pratigya Waiju

Published

on

BIRATNAGAR— The industrialists and traders in Biratnagar have asked the government to immediately reduce the high interest rate charged by the bank and financial institutions (BFIs) from the borrowers.

They argued that the interest rate should be around seven percent for the production-based industries and up to nine percent for the trading firms.

At a programme jointly organised by Industry Association Morang and Trade Association Morang on Thursday, the business leaders drew attention of the government to that end adding that job creation for the labour force of 500,000 was not likely only from the industry and trade sectors.

ALSO READ :  Govt decides to award Budhi Gandaki Hydel project to Chinese firm again

Stressing the need for slashing the interest rate, they also argued the central bank should realise the reality that no bank was running out of loss. The industrialists and businesspersons said that industries and business should flourish to reduce the trade deficit, strengthen the economy and create more job opportunities.

Industrialists Bhim Ghimire, Pawan Kumar Sharda, Sushen Pyakurel, Moti Dugad and others said that bank’s interest rate should be low to increase the domestic investment and lure the foreign investment.

Continue Reading

Economy

With investment of Rs 200 billion, Nepal becomes self-reliant in cement

RSS

Published

on

By

KATHMANDU— With huge amount of national and foreign investments in cement industries, Nepal is self-reliant in cement production this year onwards.

According to industrialists, cement industries have received the investment of around Rs 200 billion while this sector has the annual transaction of worth Rs 150 billion.

Chairman of Nepal Cement Producers’ Association Dhrubaraj Thapa said that Nepal has become self-reliant in cement production from zero level at the interval of 16 years with the entry of the private sector in the production of cement adding that Nepal is expected to export cement from the next fiscal year.

“Compared to other sectors, cement industry progressed in a speedy manner. This is the prideful moment for Nepal. Now, the government should take steps to resolve the problems facing the cement industries,” he argued.

Himal Cement Company first started the productions of cement in Nepal in 1960 but the private sector invested in cement industry 16 years ago. Currently, there are 56 cement industries in Nepal including two state-owned companies– Udayapur Cement Industry and Hetauda Cement Industry.

ALSO READ :  Rasuwa customs doubles revenue collection

According to Thapa, the cement factories in the country produced 9 million tonnes of cement in the last fiscal year despite their production capacity of 13 million tonnes. Likewise, the country imported meager five percent of cement during the same period.

However, industrialists claim that cost of cement production in Nepal is one of the highest in the world and lack of sufficient raw materials and coal is responsible for the high cost, it is said.

The industrialists have argued that frequent changes in policies, problems in labour laws, compulsion to hire foreign human resources, hassles in regard to mines and forest sectors, debate about taxation in between local and province levels and some others are the key problems in this sector.

Engineer at Department of Mines and Geology Jayaraj Ghimire said that programmes to promote limestone would be initiated in Nepal adding that a total of 168 industries are given license to extract the limestone.

Likewise, Minister for Industry, Commerce and Supplies Matrika Prasad Yadav said that the government was planning to further develop the cement industries by amending the legal hassles existing since past.

He also urged the stakeholders for cooperation and consultation, stating that prosperity was not likely without development of industries and partnership with the private sector.

Continue Reading

TOP PICKS