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Kathmandu Thursday February 08, 2001 Magh 26, 2057.
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Exporters sore
with govt over delay in EPZ construction
By Bijay Babu Khatri
KATHMANDU, Feb 7 - Years have passed since
the government announced its plans to establish Export Processing Zones (EPZs) with high
aims of consolidating and promoting Nepali exports. However, the government has kept
itself busy conducting studies and drawing out plans only, while the actual implementation
remains rhetoric.
The government in the last budget had even
allocated Rs 60 million for setting up the EPZs near the Inland Container Depots (ICDs) at
Biratnagar, Bhairahawa and Birgunj. More than seven months have elapsed since and the
first brick for the zones is yet to be laid.
The government in its ambitious ninth
five-year plan had adopted long-term strategy of constructing the EPZs near the ICDs to
simplify administrative procedures and reduce bureaucratic hassles to exporters, among
others.
Despite the delay, government officials have
said that the EPZs will be constructed soon and will be carried out as per the original
plans of the government. Chief of the transit section at the Department of Commerce,
Naresh Pokhrel said that the matter was even discussed with Brajesh Mishra, Advisor to the
Indian Prime Minister Atal Bihari Vajpayee, during his recent Birgunj visit.
Pokhrel said that the Indian side had
responded positively and expressed commitment to extend necessary support for the purpose.
The Indian team had proposed to send a delegation for carrying out feasibility studies
soon, he informed. "We are in touch with the Indian authorities."
Informing that the amount allocated by the
government alone is not enough to carry out the necessary construction works, Pokhrel said
that’s the reason Indian help had been sought. In addition, the department is also
looking for other potential sources of financing.
Exporters have also been urging with the
government to move forward with the EPZ construction plans quickly. They have attributed a
reduction in investments in export oriented activities by bringing down the costs of
transportation, eradication of administrative hassles and immunity from labour problems as
the major plus points of the proposed EPZs.
The need for EPZs has been realised lately
since it would be equipped with the necessary infrastructure to meet all requirements
during exports. Businessmen have also lauded the role that EPZs can play in the present
context of changing global trade scenario, which calls for higher efficiency and lower
investments.
"Since over 50 EPZs exist in Asia and
the Pacific region, there is a strong need to start the same in Nepal solely with the
objectives of increasing the competitiveness of Nepali products in the international
markets," said Puskar Dev Pant, General Secretary of Garments Association of Nepal
(GAN).
The enhancement in competitiveness may be in the
form of production of high quality goods at lower investments and time bound delivery, he
said. The advantages of EPZs are manifold. Apart from decreasing investment and increasing
productivity, there will be perennial supply of basic inputs like water, electricity and
other necessary amenities.
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