Organizing a press meet on Friday to make public its position about the economic fallout from the recent situation, the umbrella organization of the Nepali private sector said that the turmoil has caused economic havoc in the country.“Tarai protest led by some political parties for the last few months has pushed the economic, social and education, among other sectors, to a serious mode,” FNCCI president Pashupati Murarka said. “Nearly 2,000 industries are closed while materials worth billions of rupees have been stranded on the other side of the border. The demurrage charge on these materials is beyond our affordability. Many raw materials are already damaged or rotten,” he added.
FNCCI estimates that the Tarai turmoil and the subsequent unofficial economic blockade has resulted to economic loss in tune of Rs 200 billion. “Apart from the direct economic loss, the current turmoil has sent a negative image of the country in the international community. This will have an impact in the national and foreign direct investment,” he added. “Though industries and businesses are closed, we are still supposed to pay wages, rents and banks interest.”
Referring to recent rise in price of various commodities and essential supplies, FNCCI President Murarka attributed disruption of raw materials supplies, fuel crisis, lack of security in the industrial corridor, and extremely high cost of transportation to the compulsion of people’s paying higher prices.
“There is a situation where businesses and industries are frightened of being punished under the pretext of promoting black market,” he said. “Price of the commodities is bound to rise if cost increases. You cannot call it an act of black market,” he added.
Also speaking at the press meet, FNCCI Vice President Shekhar Golchha said that industries and businesses were under immense pressure to cut their workforce “So far, some industries have managed to pay salary and wages, while others have paid half. Now, they are feeling difficulty to withstand such pressure,” he added.
The apex organization of the private sector has also called the agitating parties and the government to resolve the problem as soon as possible to prevent the country from heading toward an abyss. “FNCCI wants to draw the serious attention of the government toward the imminent danger of economy falling off the cliff if the businesses and industries cannot resume immediately. Without any delay, the government and agitating parties should sit for the dialogue and give the country headway,” reads a position paper of the FNCCI, issued in the press meet.
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