KATHMANDU; The symptoms of economic crisis cannot be denied in the present context, according to Dr Ram Sharan Mahat, former finance minister. He warned that the maximum import of the consumption goods compared to capital goods is a major reason for the liquidity crisis in the country. Dr Mahat was speaking at an interaction organized by the Society of Economic Journalists of Nepal (SEJON). According to Nepal Rastra Bank (NRB) deputy governor Krishna Bahadur Manandhar, the country is facing a liquidity crunch since the second quarter of the current fiscal year. He added that loans provided in an uncontrolled manner by commercial banks have accelerated the liquidity crunch. Manandhar claimed that although remittance has not decreased, the remittance rate has decreased to a certain extent. The senior financial advisor to the Finance Ministry called for economic diversification, adding that the economic sector is in a state of policy dilemma. “The financial system of the country is not responsible for the liquidity crisis, but the new players, not having window access to NRB, are responsible as they are heading towards risky landings,” said Manandhar. Another major reason for the crisis is the gold import worth Rs 30 billion which is Rs 19 billion more than the previous year. The delay in the approval of the budget of this fiscal year also accelerated the liquidity crisis, said Nepal Bankers’ Association (NBA) president Sashin Joshi. The deficit of Rs 20 billion in the balance of payment (BoP) is a major challenge to the government. Manandhar claimed that the control in import of gold has controlled BOP to a large extent. “Although at present even if NRB artificially decreases the interest rate on loans provided by the government banks, it would affect the economy in the long run,” he said. In this context, Dr Mahat said that there was a need for political consensus and favourable environment for investment to manage the liquidity crisis. “Tariff adjustment, moral persuasion of commercial banks by NRB are some of the solutions to decrease the import rate and stem the liquidity crisis,” said Dr Mahat.