Kathmandu, March 23
Deputy Prime Minister and Minister for Physical Infrastructure and Transport, Narayan Kaji Shrestha, has said that the country's economy will not be sustainable unless the capital budget is utilised effectively and the trade deficit is reduced.
Speaking at the programme organised on the occasion of the ninth annual general meeting (AGM) of the Nepal-Italy Chamber of Commerce and Industry (NICCI) here today, Minister Shrestha reasoned that no matter how many slogans of economic prosperity are announced, the economy of the country will not be sustainable without good governance, effective utilisation of the capital budget and reducing the trade deficit.
Stating that there is no alternative but to move forward in coordination between the government and the private sector to accelerate the pace of achieving economic prosperity, he stressed increasing domestic production and controlling imports alongside promoting exports.
"If we are unable to maintain good governance, ramp up capital expenditure and reduce our trade deficit, the goal of achieving economic prosperity is unlikely to be achieved just by shouting slogans. While the government is also aware of the present situation, it should also take initiatives for such," he said.
Minister Shrestha also said that the stakeholders concerned should focus on further strengthening the bilateral trade and diplomatic relationships between Nepal and Italy and that it could lead to a balanced trade between the two countries while also attracting the inflow of Italian tourists to Nepal.
Similarly, welcoming all attendees on the occasion, Rajendra Malla, president of the Nepal Chamber of Commerce (NCC), mentioned that although the Nepal-Italy relationship has reached 64 years, an embassy has not been established in the country so far, adding that the minister and stake-holders concerned should also take the initiative towards making that happen in coordination with the Ministry of Foreign Affairs.
Talking about the export-import ratio between the two countries, Malla informed that Nepal imports goods worth $22 million from Italy while exports stand at $8 million.
Stating that the country's imports are nine times higher than the amount of exported goods at present, he suggested all sectors and industries move ahead towards making the country sustainable and reducing the trade deficit.
He also urged Minister Shrestha to raise the issue related to many bills and policies which are left unheard at the parliament, which are crucial for achieving a self-sustainable and prosperous economy. Malla also shared that the present interest rate should be lowered to single digit alongside effective spending of the budget.
Furthermore, Gianluca Rubagotti, consulate general of Italy, said that Nepal has no restrictions for Italians who want to invest in Nepal. He shared that Nepal should also start considering the opportunities between the two countries and that the Italian institutions will remain helpful in maintaining peaceful relations and trade viability.
The people and organisations that have made significant contributions to Nepal's and Italy's economies were recognised in the programme.
Rajesh Kazi Shrestha, an honorary member of the NICCI, received a special honour. In the similar vein, Vinod Sagatani received recognition as the best importer between Nepal and Italy. Raju Shrestha received a prize for being the best exporter of Nepali goods to Italy.
The NICCI felicitated Sarbottam Lal Shrestha, managing director of Peace International Tour and Travels, for his contribution to the tourism industry in bringing the most visitors from Italy to Nepal. The Fire and Ice Pizzeria was awarded as the best investor.
A version of this article appears in the print on March 24, 2023, of The Himalayan Times.
