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Kathmandu,Saturday January 29, 2000 Magh 15th, 2056.
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Govt
welcomes software export not its earnings
-By Rabindra Thapa
KATHMANDU,
Jan 28 - When a developing country like India is earning billions of
dollars per year from software export, Nepal has failed even to take
an account of software export due to the absence of appropriate
government policy.
Due
to the negligence of the government to come out with policies to
develop software industry, and to provide policy support to the
existing entrepreneurs in the business, has hindered the development
seriously.
Software
industry, widely dubbed as the industry of the 21st century, received
first formal attention in the budget announcement of 1998/99, but it
is sad to notice that virtually nothing has happened in policy
formulation.
While
Nepal has been looking for the diversification in its exportable
items, the software exporters have been forced to receive their money
through wrongful means like hundi, an unofficial channel used by
businessmen.
Entrepreneurs
are lamenting that such a helplessness among the aspiring businessmen
has seriously discouraged the future growth of forward looking
software industry. Generally, the exportable items are rebated from
all types of taxes. But, the absence of record keeping method of
software export has deprived this group of its benefit.
Bijendra
Shrestha of Meiken Digital Technology System (MDTS), who has been
digitizing maps and exporting them to Japan, is one of the sufferers.
He has been awaiting to cash his earnings from such export for the
last two months. “I want to legalize my earnings from software
export, for which I have opted to take all the trouble. I hope the
government will help me out of this problem,” he told to The
Kathmandu Post.
Shrestha
is sure that software industry, if groomed properly, can be more
beneficial and bigger industry than current big earners like pashmina,
carpet and garment. He says the government has to prioritize the
industry, and should provide tax rebates on all the raw materials
required for the industry.
The
biggest plus point about the software industry for a landlocked
country is, it doesn’t need to be carried physically. All the works
that is done within the country can be sent through electronic signals
via the Internet to the destinations.
Juddha
Bahadur Gurung, Managing Director of Himalayan Infotech also claims
that lack of government policy is the major impediment for the export
of software. He says there is not even a proper institution to
recognize the importance of software and explore the possibilities.
According
to Bijaya Krishna Shrestha, President of Computer Association of Nepal
(CAN), there have been only three entrepreneurs, so far, who have
lodged complaints regarding software policy. Shrestha said CAN has
been pursuing talks with Nepal Rastra Bank and National Planning
Commission (NPC) for the formulation of policy. “We have noted that
the government is also sensitive about this issue. We have received
positive assurance from the government, something should be coming
very shortly,” he added.
Member
of NPC Dr Rameshananda Baidya admits the lack of policy on software
export. However, he said, the government has been doing its best to
tackle the issue. He said the government has given special thrust for
the development of information technology in the Ninth Plan, and has
includd the issue into its thrust paper.
He
also added that government has prepared physical infrastructure to
face the challenges of Information Technology (IT) in the 21st
century. The government in its budget for fiscal year 1998/99 has
appropriated Rs 10 million for computer labour. The government has
also formed a committee for the formulation of rules and regulations
on information technology under the coordination of Dr Baidya.
NPC
member Dr Baidya is confirmed that the government will formulate
information policy before the next budget. “I’m hopeful that the
policy would certainly enhance the software export business, and even
the rural people will be attracted by the employment opportunity in
this sector,” he added.
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