A seminar was organised by South Asia Watch on Trade, Economics and Environment (SAWTEE) in collaboration with Action Aid Nepal on implementation of Special Economic Zone (SEZ) projects.
Elaborating on the study paper entitled 'Special Economic Zones and Revival of Nepali Exports', economic analyst Jagadishwor Nath Shrestha said foreign trade imbalance of the country can be reduced by incorporating SEZ.
On joining the World Trade Organisation (WTO), Nepal now has to focus on building competitive industries producing quality goods and maintaining delivery schedules of products, all of which can be simplified by the SEZ projects,he said.
General Secretary of Nepal Garment Association (NGA) Uday Raj Pandey remarked that SEZ and Inland Clearance Depot (ICD) should be implemented simultaneously to increase export.
Nepali industries should be strengthened by inviting foreign investment to compete in global market.
Senior Consultant of Federation of Nepalis Chamber of Commerce and Industries (FNCCI), Dr Chiranjibi Nepal, said SEZ concept was not economically viable as industrial estates have not been able to attract industrial development measures. On the contrary custom laws, tax and labour should be amended before SEZ is implemented.
The SEZ site was proposed in Bhairahawa, Birgunj, Panchkhal (Kavre) and Devighat (Nuwakot) estimated to cost around Rs 3.88 billion to be financed from among industrial groups desiring to join the project.
SEZs will have a liberal tax regime, certain exemption in income tax, excise duty, VAT and other duties.
The SEZs will have facilities to invite investment, immigration, banking, export-import, employment of foreign workers if at least 80 percent of their production is exported.
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