Gopal Tiwari

Kathmandu, February 3:

The newly-appointed finance minister, Madhukar SJB Rana has promised that the government would concentrate on reviving ‘business confidence’ across the country as the economy is facing serious setbacks, due to bad governance.

Talking to The Himalayan Times on Thursday, Rana said that the current situation has become precarious due to Maoist insurgency, political instability, bad governance, breakdown in law and order and disrespect to law exhibited by political parties. He said that King Gyanendra took a bold decision to rescue the country from collapsing by taking charge of the country.

The time has come for all of us to reconstruct multi-party democracy and usher in peace which will help people not only to survive but become financially strong, said Rana.

Talking about economic priorities and focus of the government, Rana said, “I would work according to the Royal proclamation, ensuring decisions of the cabinet are effectively carried out for the benefit of the people.”

Talking about the financial sector reforms, he said that these would be expedited. Rana said that the government would work on the basis of the 10th Five Year Plan, while working to improve the ‘disbursement ratio along with technical assistance’. He hoped that it would generate confidence in the economy.

In order to boost the economy on a long-term basis, Rana underlined the need to attract more investment from domestic as well as foreign private sector, for which an improvement in the investment climate is a prerequisite. He promised that there will be ‘adequate security’ in addition to a conducive policy environment, allowing businesses to flourish in the days to come.

The government is committed to expedite the major financial sector reforms underway in the two largest state-owned banks, namely Nepal Bank Ltd (NBL) and Rastriya Banijya Bank (RBB) to safeguard the interests of depositors, Rana said.

Commenting on the move by NBL requesting some embassies to stop granting visas to ‘wilful defaulters’, Rana said that the bank can decide what actions are to be taken against such defaulters, as NBL is a people’s bank. Banks are free to run their businesses, as they know best how to protect depositors, be competitive and survive, Rana added. Regarding government initiatives to boost such banks’ performances, Rana said, “The government would take a broader economic perspective and will abide by the law of the land.” Introducing a note of caution, he said, banking issues should not be politicised.

“Wilful defaulters should understand that loans must be repaid on time so that banks do not suffer from bad loans and accumulate non-performing assets,” he said.

Rana, a noted economist, has worked in the finance ministry as a senior economic advisor to Dr Prakash Chandra Lohani, the then finance minister.

Rana has been propagating better economic management and development in Nepal by creating employment opportunities, at various forums and through numerous articles published in national and international dailies.