KATHMANDU: Prime Minister Pushpa Kamal Dahal has said the government is ready to form a high-level mechanism to solve the problems seen in the country's economy.
Addressing the 'National Economic Debate' organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu today, PM Dahal said that the government is ready to create a high-level mechanism proposed by the private sector.
"All sectors must be in one place and centralised expression is necessary to improve the economy. A mechanism is needed for suggestions and guidance to start a new dimension of economic reform," PM Dahal said and added, "The government is ready to form such a high-level mechanism proposed by the private sector."
FNCCI President Chandra Prasad Dhakal proposed the formation of the mechanism. After that, the prime minister who addressed the programme agreed to the formation of the mechanism.
Stating that the government is going to make a bold decision to improve the economy, PM Dahal stressed the need for a policy shift to improve the overall economic condition of the country," Prime Minister Dahal said.
The prime minister also said that the government has made long efforts to harmonise monetary policy with fiscal policy. He also claimed that if the government does not facilitate the business of the private sector, the overall economic situation of the country cannot improve. PM Dahal mentioned that there were some problems in the implementation of the policies and programmes, and budget of the current fiscal year. However, he added that the government will restructure the country's economy through annual policies and programmes for the next FY.
Addressing the programme, Minister for Industry, Commerce and Supplies Ramesh Rijal said that nobody should make a comment exaggerating the economic situation which could demoralise the citizens. "Even though the economy is not good, it has not gone down. If we continue to make comments that the country is in crisis, it will cause more problems," Minister Rijal opined. He stressed the importance of the private sector's role in the economy and stated that the government alone cannot do anything.
FNCCI President Dhakal proposed the formation of a structure for the improvement of the country's economy and said all parties should work together to solve the problem. He suggested forming an economy reform commission led by the prime minister with the participation of the Ministry of Finance, MoICS, National Planning Commission (NPC), Nepal Rastra Bank (NRB) and other regulatory bodies and the private sector work.
He cited the government's slackness as the reason for the lack of investment in Nepal. Dahakal said that although arrangements have been made to solve the problem of economic recession through the budget of the current financial year, it has not been implemented effectively. He reminded that the suggestions given by the private sector for monetary policy have not been implemented yet
Dhakal suggested analysing why the economic growth rate is low while the current loan has gone to the productive and non-productive sectors even though 90% of the gross domestic product (GDP) has been loaned.
MoF Chief Economic Adviser Poshraj Pandey said that the current problem in the economy is not a one-time problem but a continuation of problems in the past. "Now a big problem has surfaced in the economy as problems from the past have been added," Pandey said.
Economist Achyut Wagle opined that comments on the economy of the country should have something in common. "The government says that the economy is not in trouble, but the private sector and others are saying that there is a problem. It is necessary to make a fact-based commentary on what the real situation is," he said.
Nepal Chamber of Commerce (NCC) President Rajendra Malla said that in order to achieve the goal of the economic growth rate set by the government, it is necessary to come up with a corresponding monetary policy. He mentioned that prosperity can be achieved by using resources within Nepal. He stressed that it should be analysed why the demand for credit could not increase when there is more liquidity. He also suggested analysing the multi-faceted effects seen after the real estate business went down.
Confederation of Nepalese Industries (CNI) Vice President Birendra Raj Pandey said that the time has come to restructure Nepal's economy. While mentioning that the consumption in the economy is decreasing now, he said that fiscal, monetary and structural policies should have a coordinating role in improving the economy.
He claimed that when the economic policy of donor agencies was implemented in Nepal, it showed bad results. CNI Vice President Pandey opined that the economy should not be politicised.
Federation of Nepalese Industries and Commerce (FNIC) President Khimlal Bhandari said that there is a structural problem in Nepal's economy as well as in the regulatory body.
Federation of Nepal Cottage and Small Industry (FNCSI) President Umesh Prasad Singh said that the contribution of micro, cottage and small industries to the country's economy has not been given importance and added that the state should not neglect such industries, which currently number around 600,000. He stressed the need for Industry-friendly laws.
