KATHMANDU, AUGUST 16

CPN-UML Chairman and former prime minister KP Sharma Oli has stressed on the need to create a favourable environment to assist the country's industrial and private sector at a time when the overall economy is going through a recession.

Speaking at a discussion programme on 'Current economic situation: Issues and solutions,' organised by the CPN-UML's Industry, Commerce, and Supplies Department, Oli mentioned that industrialists and the private sector are being targeted under various pretexts instead of being facilitated.

'At a time when all levels of administration in the country are not able to function properly, how can the process of the country's development move ahead? The government should focus on economic growth through prioritisation of certain sectors related to manufacturing and production, which can assist in normalising the current economic situation as well as further growth,' Oli said.

He also mentioned that many businesses and industries that largely contribute to revenue collection in the country are being targeted and taken action against.

'Investors that have poured huge investments and have been contributing to the country's overall growth faced huge challenges following the earthquakes of 2015 and the COVID-19 pandemic of 2020. Such unprecedented scenarios halted their operations and plunged their growth. Instead of providing support and facilitating them with lower interest rates and rescheduling their loans, their credibility is being tarnished. The government should instead facilitate industries and the private sector to uplift the current economy and make it more vibrant,' he added.

Similarly, Moti Lal Dugar, head of the department, also mentioned that the industries and private sector are facing many issues at present. He said that although the country's private sector is being tormented under various pretexts, the government is focused on misleading the public and not looking for solutions to the ongoing issues seen in the country.

Dugar remarked that the ruling government is not even trying to understand the importance of the private sector, and added that economic growth will not be achieved by undermining the prospects of the country's industries and businesses.

'The concept of 'Prosperous Nepal, Happy Nepalis' which was introduced by the Oli-led government has transformed into 'Prosperous Baluwatar, Sad Nepalis' under the new government.

The budget is disappointing and inflation remains high.

Still, the government has remained silent and has not taken any concrete measures to resolve the issues.

Instead, the government is tormenting the private sector under the pretext of revenue collection, which will further undermine our country's prospects,' he said.

Addressing the programme, former finance minister Yuba Raj Khatiwada said that although the country is facing many issues in various aspects, the government has failed to address them. He mentioned that the government's decision to restrict the import of certain items led to a fall in imports by 16 per cent and export by around 20 per cent, which also contributed to the slowdown in economic activities and fuelled inflation. He also shared that the government's recent decision to increase fuel prices by double digits will further deteriorate the market situation.

'The issues surrounding logistics, electricity supply, tax changes, and security are the main problems faced by the country's industries and businesses, which have largely affected their growth. This has also led to the development of the black economy. The government should provide security for businesses and industries and create a favourable environment to avoid the black economy.'

Khatiwada also shared that the exponential increase in interest rates has also weighed on the country's economy affecting business operations, and that the government has neither focused on growing production nor on facilitating businesses.

'Reviving and strengthening the economy, controlling grey market activities, and easing the liquidity situation of the country should also be prioritised by the government,' he said.

A version of this article appears in the print on August 17, 2023, of The Himalayan Times.