SEZs struggle to attract industries

The government decided to establish Special Economic Zones (SEZs) in the early 2000s with the objectives of increasing production, promoting exports, creating employment, attracting domestic and foreign investment, and achieving economic prosperity.

However, even after 20 years, neither have SEZs seen sufficient industries, nor has employment been generated as expected. So much so, the work of establishing SEZs in Biratnagar, Dhangadhi, Panchkhal and Gorkha has not gained momentum. Although some industries have opened in Simara and Bhairahawa SEZs, the results are not as expected.

Industrialists and businesspeople complain that the government built SEZs but did not create a conducive environment for establishing industries and factories. High rental fees, lack of favorable supply-related policies, bank guarantee requirements, and cumbersome administrative mechanisms make it difficult to set up industries in SEZs, they added.

The government is preparing to organize the Nepal Investment Summit on 28, 29 April 2024, with the objective of attracting domestic and foreign investments.

Although 49 industries have been given permission in the Bhairahawa SEZ, only nine are currently in operation. These industries employ around 500 people.

The government has invested Rs 13.68bn in Bhairahawa and Simara SEZs. If these two SEZs operate to their full capacity, they alone can generate 34,374 jobs. But due to a lack of private sector investments in SEZs, production and employment opportunities have been lost.

Tulsi Ram Marasini, acting executive director of the Special Economic Zone Authority (SEZA), said although the government has announced plans to establish SEZs in all seven provinces, work has not progressed due to difficulty in raising investment.

Bhairahawa SEZ had generated interest from the private sector initially. As many as 25 companies have received permission to set up their plants in the Bhairahawa SEZ. However, only seven are currently operational. They include Shakti Minerals, V-star Global, Tirupati Metal, Brilliant Lighting Industries, Panchakanya SS, S Plastic Production and Jaya Buddha Metal Craft. Each of these industries employs around 100 people.

According to SEZA officials, some industries have stopped production citing problems in power supply among other issues. Fifteen companies had applied at SEZA to set up industries in Bhairahawa SEZ. However, they have not opened industries even though they received permission four months ago. Now, the SEZA is preparing to terminate their contracts.

Sagar Silwal, the senior assistant spokesperson for SEZA, said most of the companies have not been able to operate industries due to a provision that requires industrial enterprises in SEZs to export at least 60 percent of their total productions. “Companies have complained to us that they are not being able to operate industries due to the mandatory export requirement and high rental fee,” he said, adding: “The government is preparing to show some flexibility.”

Likewise, only two industries out of 11, which have received permission, are currently in operation in the Simara SEZ. Nine more industries are at different stages of receiving approval.

Pashupati Ceramics and Lalita Kumari Srivastav Company are the two companies currently in operation in the Simara SEZ. These companies employ some 250 people.

Although the Panchkhal SEZ has been under construction in Kavre for the past five years, work progress has not been satisfactory. Since the SEZ lies 70 km south of the Nepal-China border in Kodari, it is expected to attract companies targeting the Chinese market.

The government has acquired 1,000 ropani of land for the Panchkhal SEZ. Officials say construction work has been affected due to a lack of approval for forest clearance.

Works on the other four SEZs are in the preliminary phase. Engineering studies have been completed at the SEZ planned in Burju Rural Municipality of Sunsari district, while feasibility studies have been completed at the SEZ in Palungtar of Gorkha. Likewise, detailed engineering studies have been completed for the SEZs planned in Kanak Sundari Rural Municipality of Jumla and Dhangadhi of Kailali.

Meanwhile, the government is reducing the mandatory export requirement for industries in SEZ to 30 percent of the existing 60 percent. Although the provision was introduced through the budget for the fiscal year 2023/24, it has not come into implementation yet. “We are amending legal provisions to reduce the mandatory export requirement to 30 percent. The amendment bill is likely to be approved before the Investment Summit,” Silwal said.

SEZA charges a rental fee of Rs 20 per square meter on industries in SEZ. The authority has acknowledged that this is the highest rental fee in the entire South Asia.

West Indies A to tour Nepal

The West Indies ‘A’ team is scheduled to visit Nepal for a series of five T20 matches during April and May, aiming to assist both teams in gearing up for the upcoming T20 World Cup slated for June in the West Indies and the USA. This occasion will mark the first-ever tour of Nepal by a West Indies cricket team.

All five matches are set to take place at the TU International Cricket Ground in Kirtipur, starting at 1 pm, on April 27, 28, May 1, 2, and 4.

“This A-team tour underscores the significance we attach to A-team cricket and represents a crucial phase in our T20 World Cup preparations,” said Miles Bascombe, Director of Cricket for Cricket West Indies (CWI), in an official press release.

The sole prior encounter between West Indies and Nepal on the international stage occurred during an ODI match at the World Cup Qualifiers in Harare in June last year. West Indies emerged victorious in that match by a margin of 101 runs, having posted a total of 339 for 7, aided by centuries from Shai Hope and Nicholas Pooran.

Secretary of the Cricket Association of Nepal (CAN), Paras Khadka, expressed, “This signifies a pivotal moment in our cricketing journey as we welcome this remarkable opportunity, which will significantly bolster our preparations for the T20 World Cup and beyond. This landmark tour to Nepal, a burgeoning cricketing nation gradually carving its niche in the cricketing realm, is sure to captivate our ardent fans.”

The T20 World Cup features a total of 20 teams divided into four groups—A, B, C, and D. Nepal has been placed in Group D alongside South Africa, Sri Lanka, Bangladesh, and the Netherlands.

Group A comprises the USA, India, Pakistan, Ireland, and Canada, while Group B includes England, Australia, Namibia, Scotland, and Oman. Group C consists of New Zealand, West Indies, Afghanistan, Uganda, and Papua New Guinea.

The top two teams from each group will progress to the Super Eight stage. Nepal is set to participate in the World Cup for the second time, having previously competed in 2014.

Meanwhile, West Indies fast bowler Roddy Estwick has been appointed as the bowling consultant for Nepal. He previously served as an assistant coach for both the West Indies senior men’s team and the U-19 side.

New jersey unveiled

null​​​​​​​

The Nepali national cricket team’s new jersey for the upcoming ICC T20 World Cup Cricket tournament has been unveiled. Minister for Youth and Sports, Biraj Bhakta Shrestha, and Tankalal Ghising, Member-Secretary of the National Sports Council, jointly presented the new jersey at an event organized by the Cricket Association of Nepal (CAN).

The jersey features a blend of red, white, and blue colors, with the national flag of Nepal adorning both shoulders. Additionally, the lower portion of the jersey showcases an image of Sagarmatha, the highest mountain in the world. One side of the bust features CAN’s logo, while the other displays the sponsor’s logo.

The poetic resistance of Bimala Tumkhewa

Bimala Tumkhewa has been a prominent figure in Nepali literature and media for nearly two decades, carving out a distinguished presence in both realms.

Her writing style not only challenges patriarchal norms but also voices against injustice and inequality. Raised on tales of distant lands by her father, Khadga Bahadur Limbu, who served in the Gurkha battalion, Tumkhewa’s formative years were shaped by his struggles, influencing her deeply.

After Khadga Bahadur’s passing, Tumkhewa defied societal norms by performing his last rites, traditionally reserved for sons. Far from weakening her resolve, this act seemed to strengthen her, reflected in her increasingly powerful writing, particularly her acclaimed love poems.

Currently serving as the central president of Sancharika Samuha, a forum advocating for women journalists, Tumkhewa leads initiatives to address gender issues in media and promote a fairer society. Under her leadership, the organization has worked tirelessly to empower female journalists, advocating for gender-friendly policies and facilitating opportunities for their professional growth.

Tumkhewa’s bold personality was shaped by her upbringing in Pathari, Morang, where she defied societal expectations to pursue her passions in literature and journalism. Despite being the sole daughter after her brothers’ passing, her parents’ unwavering support fueled her literary endeavors and her stance against inequality.

While many of her peers pursued opportunities abroad, Tumkhewa remained dedicated to her craft, primarily focusing on poetry before branching out into storytelling and memoirs. Motherhood marked a significant shift in her perspective, influencing her creative output and inspiring her upcoming collection of stories.

Believing writers must hold themselves accountable to society, Tumkhewa has consistently used her platform to denounce injustice and immorality, challenging established norms through her writing.

Her journey to Kathmandu in 2001 was marked by the discovery of a city different from her village, yet her love for poetry forged a deep connection with its streets. Despite facing hardships, she immersed herself in the literary scene, contributing to the rich tapestry of Nepali literature.

During the 2006 protests, Tumkhewa actively participated, alongside a diverse array of citizens, in advocating for democracy. Reflecting on the camaraderie of that time, she notes a sense of disconnection among contemporary writers, contrasting with the solidarity witnessed during the protests.

Recognizing the ongoing injustices faced by Nepali women, Tumkhewa emphasizes the need for greater acknowledgment of their contributions, advocating for female representation in key positions, such as the chancellorship of the Nepal Academy, to elevate their status further.

The streets of Kathmandu would be filled with protesters every day during the 2006 protest. Within moments, the streets would be littered with tear gas, water cannons, stones, and brick pieces. Commoners, lawyers, journalists, poets and writers had all taken to the streets. Tumkhewa joined the protests daily. During those days, places like Gurukul, Naya Baneshwor, Putalisadak, Bagbazar, Ratnapark and Khullamanch would be teeming with protesters. Writers from across the country had converged on the streets. 

This was the first time such a massive number of citizens had taken to the streets for democracy after the protests of 1950, 1960 and 1990. “The current environment is not like that time. Back then, there was a deep camaraderie among poets and writers. Now, we may seem close on social media, but our hearts are far apart,” she added.

The list of injustices and violence that Nepali women have had to endure solely for being women is quite long. Although women have risen above the situation of having to commit sati (self-immolation) upon their husband’s death, Nepali society is still not free from such crimes. Women’s contributions at all levels and stages are significant, but their true value and recognition have not been adequately acknowledged. Since Nepali women have assumed all important positions in the country, Tumkhewa feels if the Nepal Academy has a female chancellor, its dignity would be enhanced further.

An assessment of Foreign Minister’s China visit

Deputy Prime Minister and Minister for Foreign Affairs, Narayankaji Shrestha, returned home after concluding a nine-day visit (March 24-31, 2024) to the People’s Republic of China, upon the invitation of Chinese Foreign Minister Wang Yi. During his stay in China, he engaged in bilateral discussions with his Chinese counterpart and paid a courtesy call on Chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), Wang Huning. 

His itinerary comprised high-level meetings primarily in Beijing, the capital city of China. However, beyond the diplomatic engagements, DPM Shrestha ventured to three strategically significant locations in China, vital for Nepal's interests. Concluding his engagements in Beijing, he visited Chongqing, Tibet, and Sichuan, situated in the southwestern part of China. These regions, emerging as pivotal trading hubs in southern China, hold considerable potential for bolstering bilateral trade ties with Nepal.

Upon arrival at the international airport, DPM Shrestha convened a press conference alongside senior officials from the ministry. He asserted that the visit had been ‘highly successful’ and had elevated bilateral relations to new heights. It's a common diplomatic practice for ministers returning from foreign trips to portray their visits in such positive terms, often using phrases like ‘newer heights’ to describe the outcomes. In Nepal, it has become a fashion statement.  

Despite the vague language used to describe the achievements of the visit, DPM Shrestha emphasized that the primary focus was on extending trade, fostering economic cooperation, and building trust between the two nations. In light of Shrestha's remarks and the outcomes of his visit, one significant progress emerges: the visit has played a role in restoring understanding and trust between Nepali and Chinese governments. This suggests that the meetings and events during the visit have contributed to strengthening the foundation of bilateral relations.

When KP Sharma Oli and Pushpa Kamal Dahal formed a new coalition led by leftist parties, breaking away from previous alliances under the Nepali Congress, rumors began making rounds that China may have played a significant role in this surprising political maneuver. Nepal’s volatile political landscape often gives rise to such rumors and gossip, and it was widely speculated that the formation of a leftist-led government in Nepal could only have been possible with the initiation and support of China, given its communist ideology. DPM Shrestha might have shared such comments and feedback with Chinese officials. And, he certainly clarified that the new coalition will try to address genuine concerns of neighbors without tilting to any side.   

Whether India sought to maintain the previous government or whether China supported the formation of the new alliance remains a question best left to be answered in due time. But in domestic political developments, Nepali political parties should stop dragging India and China as parties involved in the process. We should keep in mind that India and China have greater roles to play in a fast-changing global context beyond the neighborhood. It is completely an ignorance that New Delhi and Beijing always contemplate about intervening in Nepal’s internal affairs. This thought is just the byproduct of deficiency syndrome of Nepali general psyche.   

When the Millennium Challenge Corporation (MCC) entered into force last August, it was perceived as a significant setback for China, especially since the Belt and Road Initiative (BRI), signed four months prior to MCC, had not seen any tangible implementation. This development was seen as a blow to Beijing, indicating that the US had successfully advanced its project in Nepal while China had yet to materialize its plans under the BRI. Chinese leaders viewed MCC as part of the Indo-Pacific strategy, interpreting its entry into Nepal as a strategic move of the US aimed at countering China’s influence. While the signed document denies China’s claim that MCC is part of the IPS, Nepal’s stance should remain impartial vis-a-vis the strategic rivalry between the US and China. As a sovereign nation, Nepal should maintain cordial relations with both of its neighbors. 

This visit should be seen in the backdrop of growing mistrust between Nepal and China during the previous coalition. In that sense, the primary concern from the Nepali side was to openly exchange thoughts on bilateral cooperation and bridge that gap. DPM Shrestha has worked on it. “The visit has been instrumental in strengthening mutual harmony, respect and trust between Nepal and China,” he narrated.  DPM Shrestha is recognized as one of the few Nepali politicians with a deep understanding of foreign policy and international relations. He has demonstrated an ability to conduct diplomacy in a balanced manner that respects the sentiments of Nepal's neighbors. While maintaining relations with China, he must have kept in mind that his policy and action shouldn’t be perceived as unnecessarily loyal to any neighbor.  

During the discussion, he reiterated the importance of connectivity between Nepal and China requesting the opening of the 14 traditional trade routes that have remained closed since the outbreak of the Covid-19 pandemic, eliciting a positive response from China. This issue has surfaced in previous meetings as well. As soon as China opens all major routes for trade and transaction, it would be beneficial for China too. Nepal and China also agreed to establish a joint commission at the level of foreign ministers. This is a positive development. According to the report, this commission will play a crucial role in regularly reviewing various aspects of the existing friendly relations between Nepal and China, signifying a commitment to deepening bilateral ties through continuous dialogue and collaboration.

The much-awaited agreement on the implementation plan of the Belt and Road Initiative (BRI) was not finalized during the visit, though discussions were held to give a final shape to the plan and advance it toward the execution phase. This demonstrates the ongoing commitment of both the parties to work together on BRI and reflects their shared interests in enhancing connectivity and cooperation. Debate has been there about the modality of financing the projects under BRI. The Nepali side has been asking China to provide grants for some major mega projects while in the rest of the projects Nepal would be ready to accept the loans. China should consider the proposal of Nepal. Given that Nepal shares borders with two emerging economies and rising global powers, it is imperative to seize opportunities while avoiding unnecessary challenges.