KATHMANDU: Authorities are voicing concern that Nepal may be on the brink of an economic breakdown.

Economists and industrial authorities in the country for long have been worried about the economic status of the country which is on the verge of collapse, what with liquidity crunch, inundation of gold, increasing land price and inflation becoming critical issues.

“There is not much industrial development in the country as many factors are a concern. Load-shedding and liquidity crunch are the main factors. We are urging the government to act but in vain,” said Nepal Chambers of Commerce (NCC) president Surendra Bir Malakar.

There is no progress in the private sector and the price hike is becoming a major concern for entrepreneurs as well as the common man, Malakar said adding that the government needs to find viable solutions and that the private sector needs to be encouraged to grow as an effective measure to counter economic meltdown in the country.

“The government is taking action but many regulations need to be implemented. We are on way to doing it. Tightening of the system and liberalization happens as and when time permits, but we will make sure we contain an economic crisis,” said Finance Minister Surendra Pandey.

Pandey added that the government and Nepal Rasta Bank are both initiating endeavours to stabilize the situation. He also admitted the fact that there is a strong liquidity crunch in the market and banks are not being able to pump in as much cash as required.

According to Pandey, many new rules and

regulations will be implemented in the near

future. “There has been an imbalance in payment

due to the heavy import of gold into the country. Once the gold import is controlled, remittance will

increase and restore

liquidity,” he said.