KATHMANDU, JANUARY 18
Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel said the ministry was working to identify the problems facing the national economy.
He said concrete plans and programmes would be forwarded after identifying the problems.
Speaking at an interaction on 'Economy: The Way Forward' organised by the Nepal Chamber of Commerce here today, Minister Poudel said, "Although Nepal had faced huge economic problems in the past as well, the economy had not shrunk to the extent we are witnessing today."
"Nepal has already braved the double whammy of the deadly earthquake and border blockade. We faced adversities willy-nilly. We have no more effects of border blockade or earthquake, but the question arises how we reached such a disappointing stage of the economy." He further viewed that reasons behind the economic shrinkage were being studied. The problems are being analysed closely. "I'm looking for a reliable and decisive solution to the problems," the finance minister vowed. According to him, the present government is facing a worrying state of capital expenditure and revenue mobilisation.
"Now, the government will work to widen the tax net and make the tax administration effective. The government is committed to maintaining fiscal discipline," he added.
Minister Poudel also urged the private sector to understand the problems facing the government at present.
Former finance minister Yubraj Khatiwada commented that Nepal's economy had been saved from the state of crisis from time to time. "Nepal's economy was successful in evading frequent crashes," he viewed, adding that the Nepali economy was like that of a plane unable to make a successful landing.
He suggested that the government bring the economy back on track and take initiatives to maintain balance in fiscal policy and monetary policy. "There is no point in rejoicing at the increase in foreign currency reserve by reducing goods that help create capital in the country. Initiatives are essential to promote domestic products," Khatiwada suggested. He also suggested that the government effectively implement the hedging system in a bid to bring in foreign investment.
Former vice-chairperson of the National Planning Commission Swarnim Wagle said Nepal must forward its economy in an informed manner as the world was predicted to face a challenging time in 2023. "The financial account of the government should be robust," he said, adding, "Financial liability created by government employees and social security is taking toll on the economy." According to him, it is the time to identify the sector of comparative advantage and goods to be sold.
At the programme, Chairperson of Nepal Chamber of Commerce Rajendra Malla demanded concrete actions on the part of the government to resolve economic problems.
He argued that there was no relevance of agricultural loan.
"The state of low revenue and low agro-product are serious," he said, urging the government to assist in branding handicraft items and promoting tourism and developing a hub of information technology.
A version of this article appears in the print on January 19, 2023, of The Himalayan Times.
