The government is planning to set up a Nepali-China joint-venture (JV) bank to facilitate the trade between the two countries through banking facility.
Addressing the traders at an interaction – organised by Nepal Chamber of Commerce (NCC) here today – finance secretary Rajan Khanal said that the government is holding talks with the Chinese authorities to establish a JV financial institution to facilitate trade with the China through the banking system. “Establishment of a JV bank will make the Letter of Credit (LC) opening easy that will help formalise the trade,” he said, adding that a Chinese bank is likely to come to Nepal soon. “There is also a probability to create a JV with a government-owned bank.”
The private sector is also trying to bring a Chinese bank in Nepal to facilitate the trade with the northern neighbour since long. But they have not been successful in bringing any of them due to lack of suitable partner. “The traders are using Telex Transfer (TT) also known as wire transfer or draft to make the payment to the Chinese traders,” Khanal said, adding that the LC is an instruction from the importers to a bank in a foreign country to pay the money to the exporters when the required conditions are met while TT is the transfer of money from one bank account to another through electronic means.
The trade between Nepal and China is increasing in recent years. Nepal imported goods worth Rs 186.6 billion in the first 11 months of the current fiscal year 2018-19 from China, while it has exported goods worth Rs 1.96 billion to the northern neighbour.
Khanal, on the occasion, also said that the government is serious about addressing the grievances of the private sector. “The government is trying to create investment friendly environment with better incentives and tax waiver policies,” he said, asking the traders, however, to not run the businesses on tax incentives. “As Nepal is the members of the World Trade Organisation (WTO) and South Asia Free Trade Area (SAFTA), duties on import of foreign goods will go down gradually so you have to develop competitiveness.”
Likewise, revenue secretary Lal Shankar Ghimire, on the occasion, said that the government is planning to establish a Revenue Board in the first month in the next fiscal year.
The government has promised to establish a permanent Revenue Board since long. “It will come into existence from the beginning of the next fiscal year,” he said, adding that the government wants to have an intensive discussion with the private sector to make the board more effective, as the government wants to facilitate the business environment, “The Finance Ministry is developing a home delivery system for the Permanent Account Number (PAN) cards, which would be implemented soon.”
Ghimire also informed that the government is trying to protect the domestic products that have potential to make the country self-reliant. “The protection could sometimes be harmful for the consumers as the consumers have less choice, and the government also losses revenue but protection measures are being applied to let the domestic business grow and reduce the whopping trade deficit based on rising imports.”
President of the NCC Rajesh Kazi Shrestha, on the occasion, demanded the government not to promote industries that import raw materials.
Addressing the traders at an interaction – organised by Nepal Chamber of Commerce (NCC) here today – finance secretary Rajan Khanal said that the government is holding talks with the Chinese authorities to establish a JV financial institution to facilitate trade with the China through the banking system. “Establishment of a JV bank will make the Letter of Credit (LC) opening easy that will help formalise the trade,” he said, adding that a Chinese bank is likely to come to Nepal soon. “There is also a probability to create a JV with a government-owned bank.”
The private sector is also trying to bring a Chinese bank in Nepal to facilitate the trade with the northern neighbour since long. But they have not been successful in bringing any of them due to lack of suitable partner. “The traders are using Telex Transfer (TT) also known as wire transfer or draft to make the payment to the Chinese traders,” Khanal said, adding that the LC is an instruction from the importers to a bank in a foreign country to pay the money to the exporters when the required conditions are met while TT is the transfer of money from one bank account to another through electronic means.
The trade between Nepal and China is increasing in recent years. Nepal imported goods worth Rs 186.6 billion in the first 11 months of the current fiscal year 2018-19 from China, while it has exported goods worth Rs 1.96 billion to the northern neighbour.
Khanal, on the occasion, also said that the government is serious about addressing the grievances of the private sector. “The government is trying to create investment friendly environment with better incentives and tax waiver policies,” he said, asking the traders, however, to not run the businesses on tax incentives. “As Nepal is the members of the World Trade Organisation (WTO) and South Asia Free Trade Area (SAFTA), duties on import of foreign goods will go down gradually so you have to develop competitiveness.”
Likewise, revenue secretary Lal Shankar Ghimire, on the occasion, said that the government is planning to establish a Revenue Board in the first month in the next fiscal year.
The government has promised to establish a permanent Revenue Board since long. “It will come into existence from the beginning of the next fiscal year,” he said, adding that the government wants to have an intensive discussion with the private sector to make the board more effective, as the government wants to facilitate the business environment, “The Finance Ministry is developing a home delivery system for the Permanent Account Number (PAN) cards, which would be implemented soon.”
Ghimire also informed that the government is trying to protect the domestic products that have potential to make the country self-reliant. “The protection could sometimes be harmful for the consumers as the consumers have less choice, and the government also losses revenue but protection measures are being applied to let the domestic business grow and reduce the whopping trade deficit based on rising imports.”
President of the NCC Rajesh Kazi Shrestha, on the occasion, demanded the government not to promote industries that import raw materials.
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