Demand for the continuation of the refinancing facility

Desk By Karuna

The refinancing facility in the export company should continue, according to the Federation of Export Entrepreneurs. Ram Bahadur Gurung, the president of the federation, called Maha Prasad Adhikari, the governor of the Nepal Rastra Bank, on Sunday and demanded that the provision for refinancing in the export business be retained in the monetary policy.

Chairman Gurung said that the lack of liquidity in the economy has put an end to the impact of COVID-19 on Nepal’s export sector.He requested to implement a monetary policy that would take the private sector into consideration, claiming that it has significantly impacted the nation’s economic operations.

More than two-thirds of Nepal’s non-tariff export barriers, as well as procedural and regulatory difficulties, according to the federation, have stopped Nepal’s export trade from expanding as expected. He said that although Nepal purchased more than 4,000 commodities, exports were fewer than 1,000 and that the export sector should be given priority. According to Chairman Gurung, the decrease in Nepal’s exports is to blame for the rise in the trade deficit.

The Federation has asked to include it in the monetary policy with the understanding that Nepal’s “GSP” facility, which has been in place until 2026, will be terminated after the Federation moves away from the least developed nations. The NRB has also demanded that the export credit issue be resolved. The exports of Nepal are less than those of other nations, hence an export credit fund should be established with operating capital equal to 25% of the prior exports.

As in other nations, a specific bank should be established to support the growth of the export industry. It has asked that the challenges of working in the customs area be removed, and preparations be made for hassle-free automated deposits into the bank accounts of the relevant industry companies based on the customs-certified paperwork.

Without paying additional fees or interest, the interest and payment amount from the current fiscal year should be capitalized for the following fiscal year.

To simplify foreign payments, the Foreign Exchange Act should be amended. Warranties and guarantees should also be provided when selling Nepali items online in the global market. Chinese currency should be used for export commerce with China, much like Indian currency for export trade with India. In order to reduce it, the federation has asked that export risk insurance be set up.

Source: Nepal Television