Moti Lal Dugar is chairman of the Century Group of Companies and a Member of Parliament. The Century Group has a diverse investment portfolio including spices and food products, chemical and pipe industry, life insurance and hospitality industry. Dugar has signed an agreement with the Radisson Hotel Group to build the Centurion Hotel in Biratnagar. The Post’s Krishana Prasain caught up with Dugar to talk about the tourism industry and the country’s economic situation. Excerpts:

You are building a 145-room five-star hotel in Biratnagar which will be managed by the Radisson Hotel Group, one of the world's largest. How do you see the outlook for tourism?

Tourism has huge potential. Nepal, naturally beautiful, has the tallest mountain on the planet—Mount Everest. A diverse topography and climate makes Nepal unique. We have the ability to host 5 million tourists a year, and if we succeed in bringing that number, it will boost our economy to another level. But to realise this ambitious goal, the government needs to make investment in the tourism sector. Till now, only the private sector is putting in its entire efforts.

But there are challenges as well. Political instability, lack of infrastructure and lack of connectivity makes Nepal full of hassles. So, infrastructure needs to be built, especially by the government to reap development from tourism.

Why do you think the tourism industry is a promising sector?

As I already said, the scope of tourism is big due to the blessings of natural beauty. Besides, as the country is on the development track, it can also be a destination for doing business. For instance, I am building a five-star hotel in the eastern region which will be a unique project as there will be a shopping mall, health club, dietician centre, naturopathy centre, wellness centre, casino and banquet hall. The hotel is being constructed in Biratnagar which is not considered as a tourist centre. But it is a city which is one of the major industrial hubs, and also a medical and educational hub. I decided to invest in the hotel in Biratnagar observing the huge scope of leisure and business tourism prospects.

How do you assess the current economic scenario of the country? What challenges do you see ahead?

The current economic scenario of the country, according to my observation, is the worst in 50 years of history. We do not have adequate foreign exchange reserves and banks are facing a liquidity crisis. The banks are not in a condition to invest in industry and trade, and support investors to launch big projects. The banks are not even able to provide loans that have already been approved. Interest rates are on the high side. It is difficult to survive in such an economic condition. I personally blame the government’s faulty policy in bringing the economic situation to this level. If the capital expenditure was spent on time, the economic situation would have taken a different turn in the post-Covid era. Inflation has also risen sharply. Farmers are facing a fertiliser shortage. The country is in a situation of economic failure.

The government has banned the import of some goods under the luxury category. Do you think that such restrictions will help to save foreign exchange?

The government needs to look at the benefits after having banned the goods. But observing the market, there is no scarcity of the goods that have been restricted. Everything is available. The goods are coming through and consumers are being charged high prices. The government has failed to control smuggling. Though the restriction has somewhat helped in maintaining foreign currency reserves, the government is losing revenue on the other side. The restricted goods are coming through illegal channels due to the open border which the government is not able to control. It is affecting genuine traders who are doing business by taking loans.

How hard has it become to do business following the import restrictions and banks facing a liquidity crisis?

It is very difficult to do business now. Traders have turned gloomy as they have been running their business taking loans from the bank. The side effects of import restrictions are many. The government should immediately think of other ways to boost its foreign currency reserve. The import restriction will not solve the problem. Corruption is thriving.

The trading sector in Nepal has been flourishing. Is it due to the high-profit factor? Why is the government not supporting the manufacturing sector?

As the country does not manufacture many goods on its own, those goods are being imported. Trading has thrived to fill the supply gap in products that the country does not produce. Trading provides more revenue to the government than industry, and it is important. Supporting any sector is dependent on the government’s vision. Industrialisation was rapid in our time, but later it suffered because it did not fall under the government’s priority.

As your company is engaged in different sectors, are you facing a shortage of human resources? How is your company dealing with gender gap at the workplace?

It is difficult to get skilled manpower in the country with the large number of people going abroad because of attractive pay. It depends on the type of work. There are some jobs that women cannot do, and there are some jobs that females do well. For instance, in my chemical industry there is only work for male with no women workers needed. There is little work in our pipe industry for females; but in the spices industry, women workers outnumber men.

Why aren’t big companies in Nepal investing in the agriculture sector?

It depends on the government's policy. Equipment is required for agricultural production, but we do not have any companies that invest in equipment. There was Krishi Aujar Karkhana that also got closed. There is no chemical fertiliser industry in the country, and farmers have been facing shortages every passing year. That is why the private sector is least bothered by the agriculture sector. The government also needs to specially encourage the agriculture sector by providing credit at a minimum interest rate, and customs waiver on agricultural equipment. It is unfortunate that being an agricultural country, we have been importing agricultural products in huge amounts.

You are a Member of Parliament. Is it rational for businessmen to engage in politics?

Obviously, it is logical and practical. I am fully engaged in my business and also a fulltime politician. I have been managing time equally. Business people should be in politics. They have economic vision. There are many business tycoons in the world in politics. Business people should be encouraged to join politics.