Wednesday, May 30, 2012

Five key policies in limbo in absence of Parliament

After the dissolution of the parliament, the future of as many as five key policies that could have helped encourage exporters has become uncertain.
Special Economic Zone (SEZ) Bill, amendment of Industrial Enterprise Act Nepal Accreditation Board Act, the Standard Metrology Act, and Foreign Direct Investment Policy have to either wait or come through an ordinance, which seems a far-fetched idea as the country has again pushed economic agenda to the back burner after May 27.
SEZ Bill was tabled in the parliament in 2008 but was not approved even after four years, said spokesperson at the Ministry of Industry Yam Kumari Khatiwada.
The much awaited SEZ Bill could have helped export-oriented industries like garments and pashmina to boost exports ensuring the smooth operation of the industries, free from strikes and bandhs, that have hit the industrial sector hard.
Similarly, the ministry had also collected suggestions from concerned stakeholders to amend the Industrial Enterprise Act but it could not be tabled after the dissolution of the parliament, she said, adding that Nepal Accreditation Board Act and the Standard Metrology Act has also been finalised by the ministry for approval.
The ministry was all set to finalise the Foreign Direct Investment (FDI) Policy which remains in limbo now, she informed.
Had the Industrial Enterprise Act been amended, sick industries could have been relieved as they could have got some relief package but their hopes have been shattered.
Exporters were hopeful about receiving some relief after the amendment
of the Industrial Enterprise Act that was expected to facilitate the rehabilitation of sick industries.
The taskforce was working to list the sick industries with criterion for sick industries that could have helped in their revival. It had received applications from 26 firms for relief packages. The high level task force had also recommended multiple relief packages for sick-industries.


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