Immediate steps must to revive garment industry

BY A STAFF REPORTER

Kathmandu, Dec. 26: If Nepal fails to enhance its capability in the context of changing global trading atmosphere, "it will have to bear a huge cost to revive its economy. The garment industry, once it was considered one of the major industries, is on the verge of collapse owing to various internal and external factors, warned country’s prominent businessmen. Immediate measures are essential to revive the ailing garment industries and for this partnership approach between the government and private sector is essential, they said.

Addressing a national seminar on "Nepalese Garment Industry under Changing Global Trading Environment," organised by Garment Association Nepal (GAN) here today Minister for Industry, Commerce and Supplies Purna Bahadur Khadka affirmed that the government is ready to provide every kind of cooperation to the private sector if that really helps prop up country’s economy. However, Minister Khadka said, "Private sector should also be proactive towards making joint efforts with the government in order to achieve economic goals."

Minister Khadka also noted that the private sector has not been able to give as much feedback as it should. In the context of changing global trading scenario, our private sector should also play an active role in the process of capacity building. It is already understood that enhancement of capacity is vital for existence in today’s world, but everybody should know competitive strength could be enhanced in real sense, he added.

The government is always ready to extend support to the private sector. For this, the Ministry of Industry, Commerce and Supplies (MoICS) has maintained Calendar of Operation for an effective execution of the government’s programmes, Minister Khadka noted. "Besides, the recent move of the ministry to wave import duty by one per cent should be taken positively."

Minister Khadka pointing out the need for building an atmosphere of cohesiveness between banking sector and industrialists, said, "Understanding between banking institutions and industrialists is essential." The recent changes in the in Cash Reserve Ratio by Nepal Rastra Bank are a positive move towards building such an atmosphere.

Regarding the amendment of the Labour Act-2049, Minister Khadka said it is under review. "Nobody needs to be panicked about the amendment of the Act," he noted.

He also reiterated that the government is always ready for partnership approach.

Kiran P. Saakha, Coordinator of the WTO Cell at GAN noted that the garment industries, which had a very bright prospect in the past, is in dire need for rescue now. Time has come to think about the future of our garment industries since the quota system under the multi fiber agreement (MFA) is going to be over after 2004. We have various challenges that need to be addressed on time, otherwise it could trigger a great problem in the economy.

Chandi Dhakal, second vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) pointed out the need for enhancement of capacity in the changing context of world trade. Dhakal stressed the need for coordinated approach of the government with private sector.

Brij Gopal Innani, President of GAN, expressed hope that the government would also initiate some concrete steps to revive the garment industries.

Puskar Dev Panta, vice president of GAN, expressed confidence that the joint efforts of the government and private sector would help overcome the problem.

There were 57 garment industries in 1982, but in the span of 12 years, the number had gone up to 1,057 by 1997. In the recent years almost 85 per cent garment industries have closed down owing to various factors.

Meanwhile, economists and trade experts expressed their concern over the deteriorating situation of the garment industries.

Presenting his working paper Bijendra Man Shakya, a resource person at the WTO Cell of Garment Association Nepal (GAN) explained major bottlenecks for developing garment industries. He said supply side constraints, inadequate trade services, lack of market intelligence, policy of the government, difficult to market access, demand constraints and changing global trade investment are the major constraints for developing garment industries.

Prof. Puskar Bajracharya commented the paper of Shakya. Dr. Prithvi Raj Ligal, vice president of National Planning Commission (NPC) and Dr. Shankar Sharma, member of the NPC, also spoke on the occasion.

Call for urgent moves to save tourism industry

BY A STAFF REPORTER

Kathmandu, Dec. 26: Government officials, tourist entrepreneurs and businessmen today called for urgent steps to save the country’s tourism industry from sinking any further.

Speaking at an interaction programme here, they said immediate programmes were needed to raise awareness among the local communities to promote tourism and extend it to the nooks and corners of the country.

Speakers asked the government to hold a secretary-level meeting of the Home Ministries of Nepal and India and straighten out legal hassles Indian tourists are faced with while coming to Nepal.

They said that Indian visitors were important guests for the nation’s tourism industry and, hence, the Nepalese authorities would need to relax laws to attract them.

Population and Environment Minister P. L. Singh said that a national action plan is a key to addressing and sorting out various problems that have hit the tourism industry.

"We must have a clear vision and should emphasise a partnership among the government, the business community, the civil society and the media people to revive the ailing industry," Minister Singh told the interaction, organised by Nepal Chamber of Commerce (NCC).

Singh assured that he was fully committed to join hands with tourist entrepreneurs to revitalise the industry.

Chief Executive Officer of Nepal Tourism Board Pradeep Raj Pandey categorically pointed out that lack of political commitment and cumbersome laws posed as obstacles in the way of luring more visitors from the southern neighbour.

"Firstly, Nepal should send a clear message to them from the political level, that is, we must welcome them by saying: ‘Come to Nepal and visit freely’," Pandey said.

Secondly, he said, the concerned officials should develop laws to encourage the Indian tourists to visit here.

"There is a legal provision that requires Indian tourists to submit passports or other documents showing their identity for their entry into Nepal. But they are faced with many hurdles to make such documents in their own country," said Pandey, adding, "However, the Indian side has shown its interest to solve this problem."

At the meeting, Rajesh Babu Shrestha, president of NCC, informed that All Production Limited, an Indian business company, had submitted a proposal to the NCC to help promote Nepal’s tourism by mobilising Indian electronic media.

According to the proposal, about 60 episodes dealing with Nepal’s cultural and tourist sites would be telecast on Doordarshan, India’s official television network and also on other private channels there.

"We will invite the Indian Company here and discuss about the funding for the project and select heritage sites that would be put on the TV show," he said.

"This could be very effective for the promotion of Nepalese tourism abroad," Shrestha said.

He said that Sri Lanka had already booked the Indian TV channels for two years to telecast programmes about its places of touristic importance. "This has increased Indian tourists visiting Sri Lanka."

He disclosed that a Visual Promotion Committee has been formed under the convenorship of Samir Khanna, General Manager of Annapurna Hotel.

Ambika Shrestha, Director of Dwarika Hotel said that awareness programmes were also necessary to boost internal tourism in the country.

She said that tourism related people should be given training on how to respect and behave with the tourists.

NCC has already conducted training programmes to hotel receptionists, police personnel, immigration staff and rikshaw pullers on how to please the tourists, she said.

In this regard, a Tourist Awareness Training Committee, headed by Shrestha, has also been formed.