September 15: The government has prepared a concept paper to promote local products under the heading of the 'Prime Minister Nepali Production and Consumption Promotion Programme 2079-2089'. The concept paper aims to increase the contribution of the manufacturing sector to the Gross Domestic Product (GDP) to 15 per cent in the next decade.

Currently, the contribution of the manufacturing sector to the GDP is 5.9 percent, which is declining. In the eighth plan, the contribution of this sector was 12.7 per cent. This shows that the contribution of the productive sector is gradually decreasing. In the budget statement for the current fiscal year, the government has allocated Rs 3.45 billion for the domestic production and consumption promotion programme.

The Ministry of Industry, Commerce and Supplies has prepared the concept paper to implement the programme for the growth of Nepal’s production, job creation and export-oriented business.

Former secretaries, businessmen and other stakeholders who participated in a meeting organised by the ministry on Wednesday to discuss the concept paper said that this concept won't work because it focuses only on self-sufficiency and comparative advantage.

Nepali Congress MP Gagan Kumar Thapa said that unless the Ministry of Industry takes the lead to increase the production of goods, curb smuggling and low invoicing in border areas, the problem will remain as it is. Giving examples of products like footwear, school bags, and garments, he said, “Let's arrange for public bodies to purchase and consume up to 60/70 percent of domestic products.”

Thapa said that it is also necessary to pay attention to make arrangement of at least 20 percent space for domestic products in the city's supermarkets.

Former Secretary Bimal Koirala said that the country cannot become self-sufficient just by announcing new programmes with new slogans.

It is necessary to increase the competitiveness of the industry."

Former Secretary Rameshwar Khanal was doubtful that the country would become self-sufficient in the current situation. Khanal said that the use of foreign goods is mandatory even for domestic production, adding, 'This concept is not correct because there is an inter-dependence in everything.” 

Ex-Secretary Khanal said that although the service sector has been given priority, there is no clear policy on this matter.