Nepal Chamber of Commerce and Export Council Unite to Boost Exports and Tackle Trade Deficit

An accord has been established between the Nepal Chamber of Commerce and the Export Council to mitigate the trade deficit and augment exports. In extending a welcome to the recently elected officials and working committee of the council at the Jamal-based chamber building, an agreement was forged to collaborate on diverse issues encompassing policy reforms and potential enhancements for export facilitation. As outlined by the chamber, collaborative efforts between the two entities will span from policy formulation to the streamlining of customs processes.

During this event, Chamber President Rajendra Malla acknowledged the challenges arising from the failure to identify and promote exportable goods, expressing that the anticipated benefits have not been realized. He stated, "The country holds an export potential exceeding 10 Kharba rupees. However, merely one and a half Kharba rupees have been actualized."

Chairman Malla affirmed that the chamber will take proactive measures to address policy impediments observed in export promotion. He advocated for the necessity of rendering customs administration agile and efficient, in tandem with policy reforms, to alleviate the trade deficit. Additionally, President Malla underscored the importance of establishing a high-level quarantine levy in customs and ensuring the effective implementation of export concessions.

According to him, the augmentation of exports could be achieved by facilitating direct online payments during the export process. Chairman Malla emphasized the potential benefits of consolidating agricultural products, handicrafts, herbs, tea, coffee, and other items from across the country for export through an integrated export center or export promotion house, thereby reducing production costs for small-scale businessmen.

President Malla disclosed that, within the first five months of the current fiscal year, the trade deficit has surpassed five Kharba rupees and 97 Arba rupees. He underscored the recurring trend where the country's annual trade deficit tends to closely align with the budget, characterizing the extreme trade deficit as a hindrance to economic prosperity and development. Malla attributed the growing reliance on agricultural products to insufficient domestic production and noted that even in areas with export potential, facilitation has been lacking.

Naresh Lal Shrestha, the newly elected chairman of the Nepal Export Council, voiced grievances, asserting that businessmen are facing unnecessary hardships due to the lack of facilitation in the customs process.