Nepal | November 30, 2020

WB urges investment, productivity-driven growth

Projects gross domestic product growth in Nepal to average six per cent in medium term

Himalayan News Service
Share Now:

Kathmandu, November 1

Investment and productivity-driven economic growth is crucial for Nepal to achieve the country’s development targets and capitalise on its ambitious plan to become a middle-income country by 2030, as per the latest edition of the World Bank’s Nepal Development Update (NDU), which was unveiled today.

Citing that an economic growth rate of at least seven to eight per cent in the coming years will be imperative to achieving development targets, the international financial institution stressed on the need for Nepal to shift from the remittance-led and consumption-based economic growth to one that is investment and productivity driven.

The report has projected Nepal’s gross domestic product (GDP) value, which remained at 6.3 per cent in fiscal 2017-18 despite less favourable monsoon, to average six per cent over medium term driven primarily by investments. Likewise, the report has projected inflation to hover below five per cent in current fiscal against backdrop of increasing oil price and depreciation of the Nepali currency vis-à-vis the US dollar.

The NDU report also noted that Nepal’s ability to integrate into the global market has been hampered by limited foreign direct investment over the years and suggested for a transformative change in FDI environment to assure a sustainable growth of GDP over the long term.

Citing that weak financial infrastructure, capital market and institutional investors, foreign exchange restrictions, weak regulatory framework for foreign investments, restrictive policies on borrowing from foreign lenders and complicated process for offshore capital repatriation, among others are major constraints for maximising finance for development, the report states the need to address these constraints to facilitate increased access to finance and promote instruments for long-term finance.

Informing that selected priority reforms to crowd in the private sector are must, along with a strong emphasis on increasing firm competitiveness and exports, Kene Ezemenari, senior economist at the World Bank and author of the NDU report, said, “Promoting financial inclusion, developing long-term financing to invest in infrastructure, strengthening public investment management and public private partnerships should be the key priorities in Nepal to position the country as a relevant global player.”

Meanwhile, Qimiao Fan, World Bank country director for Nepal, Bangladesh and Bhutan, mentioned that the government of Nepal should continue taking proactive and transformative steps to attract FDI and drive its development. “Key policies and practices will be needed to signal to global investors that a new ecosystem is being put in place in Nepal. World Bank will offer all necessary support to this critical agenda,” said Fan.

On the occasion, Finance Minister Yubaraj Khatiwada, said Nepal has adopted a development motto titled ‘Prosperous Nepal, Happy Nepali’, which aims to achieve faster growth through higher level of investment, productivity and effective public institutions. “Government is working on policy reforms and strengthening investment ecosystem in country, creating an enabling environment for investment and encouraging private sector to achieve their productive potentials,” he said.

Khatiwada also informed that the government is planning to host an international investment summit in March next year to capitalise on the development of industries.

A version of this article appears in print on November 02, 2018 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

National Covid-19 tally reaches 231,978 on Sunday with 1255 fresh infections

KATHMANDU: The countrywide Covid-19 tally reached 231,978 as 1255 additional infections emerged on Sunday. The capital hosts the highest amount of active cases which, on an average, reports half of the daily reported live infections. Likewise, 1404 people who were earlier infected with the vir Read More...

25 more fatalities registered today; Covid-19 death-toll advances to 1,479

KATHMANDU: Twenty-five more fatalities were reported in the last 24 hours with which Nepal’s Covid-19 death-tally has now advanced to 1,479. Meanwhile, 1,255 fresh coronavirus cases as reported today took the nationwide coronavirus case count to 231,978. Over 1.4 million deaths from the dis Read More...

Kathmandu Valley records 548 new cases on Sunday

KATHMANDU: The three districts of Kathmandu Valley reported a total of 548 new cases of coronavirus infection on Sunday. Of the new cases, 244 are females and 304 are males. As many as 422 cases were recorded in Kathmandu district while Lalitpur and Bhaktapur reported 61 and 65 cases respectiv Read More...

Chinese Defence Minister calls on PM Oli

KATHMANDU: Chinese Defence Minister Wei Fenghe has called on Prime Minister KP Sharma Oli at the latter's official residence in Baluwatar. The State Councilor and Defence Minister of China arrived here this morning on a one day official visit. Fenghe had asserted that his short visit to Ne Read More...

Bayern made to sweat for 3-1 win at Stuttgart

STUTTGART: Kingsley Coman scored one goal and set up another as Bayern Munich came from a goal down to beat VfB Stuttgart 3-1 on Saturday and stay top of the Bundesliga. It was the seventh consecutive game that Bayern, who face Atletico Madrid in the Champions League next week, conceded a goa Read More...

Liverpool held, City on fire and Everton lose again

LONDON: Liverpool were held to a 1-1 draw at Brighton after conceding a VAR-inspired stoppage-time penalty while Riyad Mahrez scored a hat-trick in Manchester City's 5-0 crushing of Burnley in the Premier League on Saturday. Carlo Ancelotti's Everton suffered their fourth defeat in five games aft Read More...

Worldwide coronavirus cases cross 62.06 million, death toll at 1,450,479

LONDON: More than 62.06 million people have been reported to be infected by the novel coronavirus globally and 1,450,479​ have died, according to a Reuters tally. Infections have been reported in more than 210 countries and territories since the first cases were identified in China in December Read More...

Warner injured, Smith shines as Australia seal series

SYDNEY: Steve Smith was at his imperious best as he scored a second successive 62-ball century to drive Australia to a 51-run victory over India at the Sydney Cricket Ground on Sunday, sealing the one-day series 2-0 with a match to spare. The clash, almost a carbon copy of Australia's 66-run wi Read More...