SEZ Act in offing: Trade Minister Shakya

Carpet Industry on death-bed: Thakur

Trade Minister Astalaxmi Shakya said that the Special Economic Zone (SEZ) Act will come anytime this week.
"To promote a helathy industrial environment, the government is bringing the SEZ Act immediately," she said addressing an interaction on 'Carpet Industry: Present Problems and Challenges', here in the valley today.
"Not only the carpet industry, every second other industry in the country is facing problems; be it trade unions, power outage or frequent bandhs," Shakya said adding that the ministry is working hard to revive industries and bring a new Industry Policy to address the sector's grievenaces and boost entrepreneurs' confidence.
"Once a lucrative sector and one of the largest foreign currency-earners, the carpet industry is today on its death-bed," said Constituent Assembly member and industrialist Kabindra Nath Thakur.
Presenting a paper, carpet expert Surendra Dhakal said, "The industry that once employed 0.4 million workers has been forced to downsize workforce to 0.15 million." He pointed out that the country exported 3.326 million sq-metres of carpet in 1993-94. This year, it exported 1.136 sq-metre -- a whopping drop of 65.8 per cent.
"The propaganda in Germany by some vested interest groups about child labour -- to destroy the Nepali carpet industry -- and the competition with cheaper Indian and Chinese carpets have hurt the sector hard," he said adding that industrial and labour unrest and government apathy have also pushed it to this sorry state.
Nepali carpet is completely dependent on US and European markets and the global economic crisis will definitely hit it. Among them, Germany -- the only country with which Nepal has no trade imbalance due to carpet export -- is the biggest market for Nepali carpet.
"The government has also failed in economic diplomacy," accused Pradeep Jung Pandey, vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). "The boost in exports will increase job opportunities and bring social justice," he said, "If not, there will again be conflict." He urged the government to declare an 'Industrial Crisis' to revive national industries.Carpet industry can help reduce rural poverty as it generates mass employment. "To weave one square metre of carpet it takes 12 persons one hour, thus generating more employment directly," Dhakal said adding that indirectly the industry provides employment three times more than direct employment.
"Nepal has to develop backward linkage -- like rearing sheep for wool so as to be independent in the matter of materials for carpet and substitute raw material import -- to get maximum advantage," he suggested. "The government should support the industry that has a proven record of success."
Nepal Chambers of Commerce (NCC) president Surendra Bir Malakar accused the government of being unsupportive and acting like a mute bystander. "The militancy of trade unions and increasing hours of load-shedding have hit industries," he said. He also urged the government to declare 'Industrial Crisis' and bring stimulus packages to revive industries.
However, minister Shakya said that her ministry had to take stock of the situation before it could take such a bold step. "Trade unions will start behaving," she tried to assuage the industrialists. Of late, the industry is also affected by the minimum wage dispute