KATHMANDU, SEPTEMBER 13
Minister of Finance Prakash Sharan Mahat has said the steps taken by the government for economic reforms are being obstructed by the disgruntled parties.
According to Minister Mahat, the disgruntled parties are not cooperating with the government. He argued that they were angered by the policy and structural changes initiated during the second phase of economic reform.
Congratulating the newly elected executive committee of the Society of Economic Journalists Nepal here today, Minister Mahat reiterated that the challenges lay in the implementation of the policy reforms as well as programmes included in the budget. He explained that the disgruntled party meant those who feared that the benefits and facilities they were availing would cease following policy and structural reforms.
According to Minister Mahat, some important plans have been put forward by the incumbent government through the current fiscal year's annual policies, programme and budget such as cutting down current and general expenses, abolition of redundant structures and process of merger, institutional and fiscal good-governance, control of leakages of revenue, competent and result-oriented administration and increasing capital expenses, among others.
On a different note, Minister Mahat admitted that the national economy was poised to slow. Nevertheless, he expressed his belief that it was moving in the right direction.
He lamented that although there was remittance inflow, the market could not be functional, because the investors were not excited. "Even though there was adequate liquidity and interest rate was comfortable, there could not be a positive climate for investment.
There is no investment in stock market or land as before. The investors, general public and one and all are reluctant to make investments," he observed. He highlighted the need to conduct positive discourse and boost investors' confidence.
Minister Mahat viewed that Nepal Rastra Bank had introduced a flexible monetary policy to revitalise the economy in the wake of COVID-19 pandemic. "During that time, investors invested without thoroughly thinking although they could obtain the loan easily which did not yield expected result," he opined. "Excessive and indiscriminate disbursement and expansion of loan in the recent past days were not only the fault of the borrower but also of the lender," he said. On a different note, Minister Mahat expressed his concern about the increasing exodus of Nepali labour force. He expressed worry that if the labour force continued to go broad, Nepal could face human resources crunch.
"It is partially true that there is dearth of opportunities and works in Nepal. The claims that students get everything after they reach foreign countries is not true," he reminded.
A version of this article appears in the print on September 14, 2023, of The Himalayan Times.
