Extortion creates terror in business sector

Increasing cases of extortions, in the pretext of donations to different political parties, have created terror among the business community, which is facing tough time amid slowing economic activities in the country.
"Extortion targeted at businesspeople have gone up significantly, resembling the situation during Maoist insurgency. It is the result of gross failure of the government to maintian law and order situation," said Suraj Vaidya, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), while interacting with business journalists on Tuesday.
Although Vaidya did not level charges on any particular political party, he made the statement at a time when the CPN-Maoist has ramped up donation drive ahead of its 7th convention scheduled to begin on Wednesday.
"We are receiving threats from political groups at a time when we are talking about creating business favorable environment to lure investment," said Vaidya. "Ultimately, entrepreneurs are forced to give donations to different groups affiliated to political parties."
He also complained of lackadaisical attitude of the government in ending the extortion drive despite attention drawn by businesspeople on different occasions. "The government has become so weak it has failed to control the high-handedness of political parties," he added.
Pashupati Murarka, vice president of the FNCCI, also said extortion has emerged as a major obstacle to doing business in the country.
"We have lost hopes as we did during the Maoist conflict when we were haplessly falling victims to extortion," said Murarka.
Business leaders also questioned the significance of the Nepal Investment Year 2012/13 announced by the government given the worsening business climate.
"Investment environment in the country has worsened despite government´s announcement to lure both domestic and foreign investment to mark the Investment Year 2012/13," said Vaidya.
Vaidya also made it clear that the Nepali business community was keen on increasing investment in the country provided that the government created favorable environment for investment.
"We want to invest. That´s why we have long been asking the government to create a favorable environment by maintaining law and order situation," Vaidya said.
Business leaders speaking on the occasion also blamed acute power shortage, lack of government´s long-term strategy on economic issues and labor unrest for deepening problems. They also said political parties were not serious about the minimum economic agenda proposed by the private sector which was expected to pace up economic activities even during political instability.
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Renewal of transit treaty criticized
The private sector has condemned the government for renewing the Nepal-India Transit Treaty without incorporating new provisions that would have facilitated Nepal´s international trade.
The Ministry of Commerce and Supplies (MoCS) recently renewed the treaty in its existing form as the Ministry of Foreign Affairs (MoFA) disagreed incorporation of new provisions, including introduction of additional lock system for Nepal-bound containers carrying third-country imports.
"We are saddened that the government renewed bilateral transit treaty without making any change to existing provisions," Suraj Vaidya, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said.
He informed that the private sector had anticipated changes to bring into operation Vishakhapatnam port and additional transit routes for overseas trade.
The Nepal-India Transit Treaty is renewed automatically if existing provisions are not amended.