I am thrilled to welcome you all to the inauguration of Nepal Pulp and Paper Industries Pvt. Ltd., marking a significant moment in our history. This venture not only marks IME Group's entry into the manufacturing sector but also signifies a new chapter in Nepal's industrial progress.
Our dedication to promoting self-reliance, economic growth, and sustainable industrial development in the country exemplifies the private sector's alignment with national development goals. IME Group's longstanding support for Nepal's commercial and industrial sectors has been instrumental in driving growth in key areas such as banking, insurance, remittances, tourism infrastructure, information technology, and hydropower.
By establishing new industries and reducing reliance on imports, we aim to create opportunities for our youth within the country, eliminating the need for them to seek employment in harsh conditions abroad. This initiative is a significant step towards fostering a proactive approach to industrial development.
Today marks a significant milestone as we unveil the cutting-edge pulp and paper industry that will tap into the vast opportunities for production, import substitution, and consumption in Nepal. Construction of this industry began in July 2078, and it is now operational, producing 75 metric tons of high-quality paper for writing and printing purposes daily.
The formal launch will take place after the inauguration by the Honorable Prime Minister today. Our efforts align with the government's goal of promoting local industries and achieving self-sufficiency in key sectors. For years, Nepal has relied on paper imports due to the closure of the Bhrikuti Paper Mill, one of the country's largest paper producers. This new industry will help fill the gap and support domestic production on an industrial scale.
However, the small and handmade paper industries play a significant role in supplying handicrafts and Nepali paper, reducing the need for expensive paper imports. Nepal has spent billions of rupees on importing paper due to price fluctuations in the international market. In the fiscal year 2080.81 alone, Nepal spent nearly 12 billion rupees on paper imports.
Nepal imports paper from countries such as India, China, Germany, America, Thailand, Indonesia, and Bangladesh, including paper rolls, sheets, paperboards of various sizes and weights, and even toilet paper.
Contrary to the traditional method of making paper from straw, hay, or wood, the paper industry in Nepal recycles old papers from homes and offices. These papers are collected by small business owners, processed to remove contaminants like pins, plastic, and ink, and then transformed into new paper products for the market.
With this goal in mind, we have launched an initiative to manufacture paper locally. Our industry will have a significant impact on import substitution, offering Nepali consumers, businesses, and industries domestically made paper at competitive prices. With an initial investment exceeding 2 billion rupees, our industry is currently focused on producing photocopy paper on an industrial scale. This type of paper is in high demand in educational, administrative, and various other sectors, meeting the needs of the local market.
Furthermore, this initiative will create opportunities for utilizing local
products, such as Janak Shiksha Samagi Kendra, which prints school textbooks. I want to emphasize that our industry is not solely driven by production, sales, distribution, and profits.
We are also committed to environmental sustainability. Our industry has implemented several measures to reduce air and water pollution. By utilizing PCC plants, we are able to mitigate airpollution and produce precipitated calcium carbonate locally. This process involves extracting carbon from chimney emissions and combining it with limestone to create PCC chemicals.
The chemical is being recycled in the industry to improve paper quality. This will help reduce the need for importing calcium carbonate and also decrease environmental pollution by emitting less smoke. Additionally, efforts are underway to recycle and reuse water from industries post-treatment. This will help reduce groundwater depletion and water pollution.
It is important to note that industrial growth plays a crucial role in job creation. I am proud to announce that the Nepal Pulp and Paper Industry will generate employment opportunities for over 300 individuals directly and many more indirectly.
This will include engineers, technicians, factory workers, supply managers, retailers, and farmers. We are committed to offering opportunities to more than 50 percent of locals and women.
Our objective is for the industry to play a significant role in empowering women, particularly in the paper production sector. Our focus is not only on paper production but also on leading the way in fostering self-reliance, creating jobs, and promoting sustainable economic development.
Our business campaign has specific priorities. Firstly, we aim to invest in areas that are a priority for the country. Secondly, we focus on investing in sectors that will directly benefit the largest number of citizens.
Thirdly, we prioritize investing in areas that have the potential to become sustainable businesses for the country and cater to the needs of all. Our businesses in remittance, banking, insurance, information technology, hydropower, and tourism infrastructure are aligned with these priorities. We believe that this factory aligns with our priorities. As the President of the Federation of Nepalese Chambers of Commerce and Industry, I would like to address a few additional points.
We faced economic challenges due to the Covid pandemic, the Russia-Ukraine conflict, the Sri Lankan economic crisis, and internal factors. While many countries announced post-Covid recovery packages, we focused on revitalizing our economy.
We have collaborated with the private sector to implement state plans, which has led to some positive economic improvements, although we have not fully recovered.
As the current government focuses on enhancing the economy, we are optimistic and enthusiastic about the potential to drive the country's economic growth. Creating a conducive environment to attract both local and international investors is crucial, and we are committed to promoting Nepal's economic prospects.
The private sector is aligned with the Prime Minister's vision for a prosperous Nepal and happy Nepalis. We acknowledge the positive impact of recent government legislation in fostering an investor-friendly climate in Nepal and actively support these initiatives.
We appreciate the government's receptiveness to our recommendations in shaping policies and laws that will benefit the economy. Investors, both domestic and foreign, seek opportunities for growth and development. The initiation of new major projects within the year will signal a favorable investment climate in the country. Therefore, the launch of this project today sends a positive message about Nepal's investment environment.
Dear Prime Minister, We are worried about the negative impact that the issues surrounding the Pathibhara cable car project may have on the investment and business climate in our country. The construction of the cable car project in Pathibhara was initiated in response to the repeated requests of the local community, local government, and provincial government. This project has been a long-standing demand of the locals, known to all for approximately 7 years.
The project construction began with the full consent and involvement of the district residents, taking into consideration various aspects such as local demands, the cultural significance of the temple, and ecological considerations. However, external attempts were made to obstruct the progress of this important project once construction commenced.
Given the challenges faced during the implementation of this project, both the private sector and the government need to consider the implications for future investments and whether potential investors will be willing to engage in such circumstances. The obstacles encountered in infrastructure development raise concerns within the private sector about the message being sent to global investors, especially as advancements in information technology continue to connect the world more closely.
We have observed numerous wealthy and prosperous nations around the world. How did these countries achieve their wealth and prosperity? What role did businessmen and entrepreneurs play in their success? It seems that the risks taken by these individuals, as well as their hard work and dedication, are often overlooked. Entrepreneurs embark on ventures that involve significant risks.
Despite this, entrepreneurs continue to invest. Some may believe that entrepreneurs are solely motivated by personal gain. However, the absence of businesses run by entrepreneurs would have a significant impact on society. What if there were no hotels, shops, buses, industries, hospitals, or schools operated by entrepreneurs in a particular area?
The truth is that the private sector, which accounts for over 81 percent of the country's economy and more than 86 percent of employment, plays a crucial role in our society. Without the production and services provided by entrepreneurs and businessmen, our situation would be vastly different.
What is the state's biggest source of income, transportation, education, health, infrastructure, and employment situation? Another crucial aspect is that the innovations of these entrepreneurs have significantly improved the lives of many individuals. Their industries and businesses have generated job opportunities, and the state's infrastructure has been enhanced through the taxes and revenues contributed by these entrepreneurs. The state's operations are sustained by these contributions. The income earned by a businessperson is often reinvested, leading to job creation and additional tax revenues for the state.
The key distinction between an ordinary individual and an entrepreneur is that while a regular person may earn Rs. 200,000, an entrepreneur takes a risk of Rs. 100,000 to start another business. They may invest up to Rs. 1 million in equity by securing loans from banks and financial institutions and putting in Rs. 200,000 of their own. This is the essence of the private sector's role.
It is essential to acknowledge the relentless hard work, commitment, and physical and mental strain that entrepreneurs endure round the clock. We often read about the biographies of successful entrepreneurs like Elon Musk, Jeff Bezos, and Larry Ellison, as well as discuss the achievements of business magnates like Tata, Ambani, and Adani.
However, there is a prevailing negative perception towards our entrepreneurs that needs to be addressed. This mindset must change in order to encourage increased investment, national development, and prosperity.
I urge the leaders of all political parties and organizations to come together for the advancement of infrastructure, job creation, public services, and state revenue. Failure to do so may result in future generations facing deprivation, poverty, and underdevelopment. Let us not politicize issues related to infrastructure, economic growth, and the well-being of the public.
Only by developing infrastructure can the living standards of citizens improve, creating employment, increasing revenue, and leading the country to prosperity. We are facing a changing world environment with decreasing foreign grants and aid, so it is essential to support indigenous entrepreneurs, job creators, and hardworking individuals who can generate revenue. Let us work together to harness the vast potential of nature and move towards prosperity.
Dhakal, President of FNCCI, and chairperson of IME Group, made these remarks during the inauguration of Nepal Pulp and Paper Industries Pvt. Ltd.
