Special Economic Zones (SEZs) and Revival of Nepalese Exports

SAWTEE and ActionAid Nepal (AAN) organised the eighteenth forum on Globalisation and WTO titled - Special Economic Zones (SEZs) and Revival of Nepalese Exports on 20 February 2006 at Hotel de'l Annapurna, Kathmandu, Nepal. The programme was chaired by Mr. Kush K.Joshi, Second Vice President, Federation of Nepalese Chamber of Commerce (FNCCI).

In his introductory remarks, Mr. Navin Dahal, Executive Director of SAWTEE said that the programme was organized to discuss various issues related to SEZs and whether this is the way forward for Nepal in order to revive its exports and sustain economic growth for the long term.

The paper titled 'SEZs and its Implementation in Nepal' was presented by Mr. Jagdishwor Nath Shrestha, Chief of SEZ Project from the Ministry of Industry, Commerce and Supplies (MoICS). He mentioned the role of the government in the promotion of SEZs in Nepal providing examples of other SEZs in the Asian region like those in India, Bangladesh and China. In his paper, he also highlighted the reasons why Nepal should opt for the establishment of SEZs and  informed that the government  has plans to develop  SEZs in Bhairava, Birgunj, Panchkhal and Ratamate in Nuakot.

The paper presentation was followed by comments from three discussants.

Mr. Uday Raj Pandey, Secretary General, Garment Association Nepal (GAN) commented on the impact of quota phase out and GAN's initial proposal to the government on the need to establish SEZs in Nepal.

Mr. Gautam Man Shrestha from the Federation of Industries in Nepal Industrial Estates (FINIE) mentioned the problems faced by industries in the industrial estates to raise loans due to lack of ownership of land in the estates and  hopes that this problem will not be encountered by industries in SEZs.

Dr. Chiranjibi Nepal, a senior economist said that a proper feasibility study needs to be conducted to ensure the commercial viability of SEZs.

Participated by more than 60 persons, the programme aimed to highlight the importance of SEZs in the Nepalese context and whether the establishment of SEZs is actually beneficial for the Nepalese economy.