Nepal must Start Iron Mine.

I heard news that some raw material of iron mine found at Nawalparasi  hill area; iron is hugely used in any kind of building for infrastructures. Citizens or government of Nepal have been using hugely quantity of iron. Nepal has been buying finish iron as well as raw materials of iron by paying huge amount of money. That is big loss of country, even Nepal has a lot iron mine inside country. To develop country, it is common sense that, production must be done inside country if related resources are available. Some people have said that buying from India is cheaper than produce inside our country. So, they have argued that Nepal should not operate iron mine inside country, but it is not good argument for country national income. If our men powers have been working full capacity for producing to others products, our available resources have been using by producing to others products, then that situation we can calculate the cost of buying or producing, which may be the profitable. If our whole men power and resources have been using for producing to others products then we can sale these products to foreign countries and we can use, that money to buy what we need and cannot produce such competitive price in our country. But here condition is difference, in Nepal so many men power are being jobless, resources are not being used for production, then why we should calculate cost of buying and producing. So, iron mine factory must be operated by Nepal, if products cannot compete with Indian production, then Nepal should increase tax rate in importing products, and subsidy to national products for continue running. Which helps to save huge national income. 

This simple idea can use all areas in Nepal. Most of the big company owners, suppliers and even suppliers of chinses products of Nepal are Indian. Huge profit amount of those businesses is being gone to India, which is huge loss of Nepal, that’s why Nepal is always compelling by suffering on poverty even Nepal have been getting huge remittance yearly. Most of huge company of Nepal have been compelled to close due to Indian products, why? because lack of knowledge with policy makers about how to compete with international products in domestic market. Our remittance must be used in production inside country whatever we can produce, if we cannot compete with Indian products, then we should increase tax rate on importing and should provide subsidy in national products. Then so many companies can run inside country, a lot of jobs would be created, remittance would not be gone to outside country then everywhere possible to sustainable growth and stable economy for our prosperity.  

Company licence should not be given to foreigner, those company, which Nepalese people can operate. If foreign companies operate inside our country, they should sale their products to foreign country or they should help to decrease our import, otherwise we cannot get benefit by operating foreign company inside the country. Country always being compelled by suffering on poverty due to huge profit gone to outside. So, policy makers should have well known about economy impact of any decision while making economy policy. One simple policy can have been playing huge role to make prosperity country. Thank you for reading. My next article will come about monetary policy.