“Resource-strapped state can no longer bear huge subsidy in commodities like petroleum products, inflicting huge loss to Nepal Oil Corporation (NOC) which is buying products at higher price and selling them at lower price. The white paper would suggest the government the measures to make supply related PEs, including NOC, economically sound,” Minister for Commerce and Supplies Lekha Raj Bhatta told Republica on Tuesday. Bhatta said the White Paper would be released immediately after the Tihar festival.[break]
He said the ministry would end the existing practice of giving flat subsidy in petroleum products by introducing a system to ensure that subsidy goes to the needy people.
“We will identify the people who need subsidy in commodities and put in place the system that will end misuse of subsidy as envisaged by the white paper,” said Bhatta.
Supply related PEs like NOC, Nepal Food Corporation, Salt Trading Corporation, National Trading Ltd fall under the ministry´s purview. The white paper will incorporate the ministry´s programs to be implemented within three months to one year.
Taking growing trade deficit into consideration, Bhatta said the MoCS would forge coordination among line ministries like agriculture ministry, industry ministry and energy ministry to boost production of domestic products as identified Nepal Trade Integration Strategy (NTIS) and other potential products.
“The white paper will come up with programs that encourage domestic production. This will help bring down our ballooning trade deficit,” said Bhatta.
According to Trade and Export Promotion Center (TEPC), Nepal´s trade deficit stood at Rs 333 billion during the fiscal year 2010/11.
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