KATHMANDU: The Institute for Strategic and Socio-Economic Research (ISSR) on Thursday organised a seminar on 'Potential of Small States: Competitive Strength and Priority of Foreign Policy in Nepal'.
Addressing the seminar, Finance Minister Prakash Sharan Mahat said that the government has prioritised the IT sector considering its potential. The income tax on IT sector has been reduced by half in the budget for the current fiscal year, he added.
He said Nepal has tremendous potential for the development of IT and tourism. However, he said that although a large number of Nepali youths are involved in IT, they are yet to be brought under the tax ambit. Minister Mahat claimed that Britain itself admitted that it was importing the software worth £100 million from Nepal.
"It is not a good idea to opt for foreign study unless a minimum of 50% scholarship is granted," Finance Minister Mahat opined. The education sector has also opportunities in Nepal, he added.
According to Mahat, the government was worried about paying loans taken for the construction of Pokhara International Airport. The international airport was constructed for tourism promotion. "If such an airport was constructed earlier in Nijgadh, it would have been better."
He argued that Nepal still had limited capacity for international airports which was discouraging to invite tourists.
On the occasion, former Finance Minister Surendra Pande opined that the country's economy is still under stress, so it is essential to change the trend in the economy. The country's economy should be changed to reap benefits from the rising economies of neighbouring countries.
He suggested launching programmes to bring in tourists from India and China to boost the development and tourism sector. Pande further argued that the support of big countries like the US is also needed to change the current economy.
Similarly, another former Finance Minister Janardan Sharma said balanced foreign policy could be helpful to improve the national economy.
