February 17: Minister for Finance Dr Yuba Raj Khatiwada has said that the government recognizes readymade garment as an important sector of the country in terms of export.

Speaking at the 26th annual general meeting of Nepal Readymade Garment Association in the capital on Friday, February 15, Finance Minister Khatiwada said that the government has a clear policy to promote domestic products by sharing the cost of the production.

"The government is ready to give subsidy in electricity, tax and others, and is also ready to deal in a package to uplift the garment and cloth industries of the country," Rastriya Samachar Samiti (RSS) quoted the minister as saying.

He also shared that the Procurement Act is being amended in order to make the mandatory provision for security bodies, public schools and hospitals to use Nepal-made products including readymade garments and cloths more effective, RSS reported.

According to RSS, other initiatives underway to promote export and production include amendments to the Industrial Business Act, Foreign Employment and Technology Transfer Act, and Public-Private Partnership Investment Act, and the Companies Act.

The government is also serious in integrating matters relating to new industry registration, operating license, foreign exchange and other procedures, Dr Khatiwada reportedly said.