KATHMANDU, APRIL 1

Finance Minister Dr Prakash Sharan Mahat has said improving the crisis-ridden economy is his priority and commitment.

"The suggestions and collaboration of the private sector are needed for this," he reiterated in a meeting with a delegation of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today. He added that he would bail out the crisis-ridden economy by taking the private sector on board.

"I will not allow your self-confidence to sap; I will be constantly in dialogue with you. I have expected your full cooperation in fulfilling my resolve to improve the economy," Finance Minister Mahat said.

On the occasion, FNCCI president Shekhar Golchha, on behalf of the entire private sector, extended congratulation and best wishes to the newly-appointed Finance Minister and also briefed him on the latest economic condition. He suggested injecting money into the market and reducing the interest rate through the joint initiative of the Central Bank and the government.

The FNCCI has urged for pursuing work to increase the liquidity in the cooperative and micro finances.

Golchha also suggested augmenting the government expenditure, saying it was too much sluggish. He stressed on expanding the capital expenditure which is merely around 25 per cent now.

"Revenue collection is low and it is difficult to cope with the current expenditure. Expenditure should be increased even by raising external loans for this," the FNCCI president said, reiterating that the loan mobilized in this manner should be used only for development expenditure.

He also called for giving out the message to raise the morale of the private sector and not to terrorize it under the pretext of raising revenue. FNCCI urged the Finance Minister to create a business and investment-friendly environment.