Develop infrastructure to boost garment industry: Experts

January 25, 2006
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Experts and entrepreneurs have pointed out the need of developing infrastructure to boost the ailing garment industry, which was on the verge of collapse following the termination of quota system to United States (US) from January 1, 2005.

Speaking at a programme in the capital on Tuesday, they said Nepalese garment industry should develop competitive strength to penetrate the global market.

Dr Champak Pokharel, member of the National Planning Commission (NPC), said that garment export has come done following the quota phaseout by US. However, the garment sector, in terms of value addition, employment and export is very significant. Therefore, we need to have future strategies to move ahead by competing with existing free market mechanisms, said Dr Pokharel.

Secretary at the Ministry of Industry, Commerce and Supply Bharat Bahadur Thapa, urged the business sector and concerned experts to make a system so that the garment sector could be made strong.

Thapa opined that business people have tremendous opportunities in the regional and global perspectives, but they have to be competent and enhance their capacities.

Sri Ram Pandey, assistant resident representative of UNDP, commented that human resource development is important along with an enabling environment to boost the garment industry.

Kiran Saakha, president of Garment Association of Nepal (GAN) said that Nepali garment industry is in a fragile state following the quota phaseout.

“Of late, quota safeguards and restrictions imposed by the US and the EU on China have forced buyers to spread risk, creating new opportunities to countries like Nepal. But, we must put conducive procedural and policy measures to exploit it,” he said.

He urged the government to expedite development of Garment Processing Zone, intensify lobbying for duty free market access in the US and remove obstacles in trading to enable private entrepreneurs to tap new opportunities.

Ratnakar Adhikari, specialist at UNDP regional center suggested to the LDCs to focus on the enhancement of competitiveness at domestic front and advocacy for duty free market access and meaningful ‘aid for trade package’ to revive the industry.

According to statistics, the export of Nepalese readymade garment, the largest foreign currency earner of the country decreased by 40 percent following the termination of quota system.