The three-day Nepal Economic Summit 2014 concluded today in Kathmandu adopting a 19-point declaration that, among others, pledges to execute at least four different large scale projects each in agriculture, energy and tourism sectors by 2015 to create additional 50,000 jobs.

The declaration also calls for creation of a high-level mechanism, including government officials and representatives of the private sector, to identify regulatory burdens and propose recommendations that can push up country’s position in the World Bank’s Doing Business Index by 10 notches by 2016.

The declaration, which is said to form a basis for ‘minimum common economic agenda’ of Nepal, has received the backing of the government, the private sector, development partners and the civil society.

“The government and the private sector have jointly come up with this document after three days of deliberations.... It is now up to the political leadership to consider (the declaration) as the (declaration) of their own political parties,” president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya said, addressing the closing ceremony of the summit, organised jointly by the government and FNCCI.

Chief secretary Leela Mani Poudyal, who was the chief guest of the closing ceremony, on the other hand, instructed concerned state authorities to start implementing agendas incorporated in the declaration.

The declaration basically classifies agriculture, tourism and energy as the priority sectors for Nepal’s economic reform and calls for increased domestic and foreign investment in these areas.

“In order to create at least 50,000 additional jobs by the private sector in agriculture, energy and tourism areas of Nepal by 2015 and gather capital for large scale projects in agriculture, energy and tourism sectors, we will identify and work with local and global investors to execute at least four different large scale projects in each sector,” says the declaration, which was read by joint secretary at the Ministry of Finance Madhu Kumar Marasini.

The declaration also calls for formulation of development strategies for the three sectors within the next six months and elimination of regulatory processes that add to the cost of doing business.

To give a boost to the agriculture sector, the declaration stresses on the need to review the existing land management systems and bring about regulatory framework that allows for contract farming and effective utilisation of land. This should be complemented by formulation of an incentive mechanism for high value products with competitive advantage to encourage private sector investment in commercial agriculture, adds the declaration.

The declaration also coins the idea of establishing an independent power trading company to encourage innovation in energy supply and increase private sector participation in this sector.

“The independent power trading company will provide a platform for trading energy between individual consumers and suppliers, thereby reducing the fiscal burden of Nepal Electricity Authority,” says the declaration, adding, “This kind of power trading company will require open access to existing transmission lines.”

The declaration also identifies the need to spot five strategic locations and develop them as tourist destinations by the end of 2016 so as to raise per capita tourism receipt to $60 from existing $36.

“In choosing these locations, we will work extensively on strategic studies that assess the market viability of these sites,” says the declaration, which also calls for upgradation of Tribhuwan International Airport, construction of regional airports in Lumbini, Nijgadh and Pokhara, to increase tourist arrivals.

Declaration highlights

• Agriculture, tourism, energy declared priority sectors for economic reform

• Twelve large scale projects to be implemented by 2015

• Regulatory framework to be introduced to allow contract farming

• Incentive mechanism for high value products

• Independent power trading company to be established

• Five strategic tourism locations to be identified

• Nepal Economic Summit to be jointly organised by the Nepal government, FNCCI every year

Published on: 27 February 2014 | The Himalayan Times