Himalayan News Service

Kathmandu, May 23:

The government has formed a high level committee under the chairmanship of finance minister Madhukar SJB Rana to review some of the important policies. The new high level committee headed by finance minister Rana is explicitly looking after the issues of Poverty Reduction Strategy Paper/Tenth Plan implementation, effective advancement of Poverty Reduction Growth Facility (PRGF) and effective implementation mechanisms for reform agendas initiated by the government, according to the ministry of finance (MoF). Similarly, the committee will also look after privatisation of public enterprises, performance and management contract of public enterprises and bank defaulters’ issue, at a time when the government is in trouble in preparing the forthcoming budget due to aid withdrawal by the World Bank.

The government has also revised the budget estimation due to developments after February 1. Foreign aid has been revised downwardly by 12 billion rupees. And revenue mobilisation is also not going to meet the target, according to the sources. The industrial sector has also recorded a downward growth, which has limited to one per cent rather than the previous estimation of 1.8 per cent. According to Federation of Nepalese Chambers of Commerce and Industry (FNCCI) report industrial sector has also posted downward slid due to increased conflict and financial crunch. However, this sector alone contributes over 60 per cent to the national coffer.

Latest FNCCI survey states that over 200 industries located in Birgunj, Kalaiya, Bara, Parwanipur, Hetauda and Bharatpur are not properly functioning, due to increased strikes and conflict in these districts. Insecurity is one of the reasons for the disturbance in the operation of industries in various districts, concludes FNCCI survey. The MoF officials said that the high-level economic reform committee would work for expediting reform agendas initiated by the government, which will ultimately boost resource mobilisation. The committee is also going to take stock of all issues surrounding the macro-economic management as the economy is facing tumultuous time. The other members in the committee are vice-chairman of NPC, governor of NRB and the chief secretary. Bhanu Prasad Acharya, finance secretary is the member secretary.