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KATHMANDU: Finance Minister Prakash Sharan Mahat has said that the government will not do injustice to the depositors.
Inaugurating the Red Bull factory established in Nawalparasi district on Tuesday, Minister Mahat said that no one can escape from repaying their loans. "This is depositors' money. Writing off the loan is to finish the depositors' money. Who compensates for this? The depositors take the same money when they need it. The government cannot do injustice to the depositors," the finance minister asserted.
He also argued that those taking huge amounts of loans from the banks and financial institutions (BFIs) have faced difficulties in repaying the loans and added that they have spread rumours saying the economy was worsening. He said that the current psychology of general public regarding the failing economy is the result of the past government's focus on building towers despite limited resources, and massive capital flow from the central bank and other BFIs.
Finance Minister Mahat said as Red Bull has now started production in Nepal, it will provide employment. If the factory is operated in three shifts according to demand, employment will increase three times. The income will also increase three times along with the revenue for the country.
He opined that the establishment of factories in the country would contribute to revenue collection and production as well adding that he was very much worried about revenue collection. "The country needs sources of income and income itself. The more we make income, the more we can invest in infrastructure. For this, investment from the private sector should increase," the finance minister stated.
He said, "Government should not run the factory. It should be run by the private sector. Entrepreneurial citizens should run factories. The government ensures competition, checks quality and checks if one person has obtained the primacy. In such an environment, a lot of investment will come, and employment will increase after investment. When employment increases, income increases, when income increases, government revenue increases. When the revenue increases, then the government can invest more in infrastructure development according to our needs, including education, health and other sectors."
Minister Mahat said, “Roads are not built by the private sector since they cannot wait for 50 years for income. Common people cannot benefit from education and health services provided by Private sector. Therefore, long-term investment is made by the state. Resources are needed to invest. Resources can be created if the private sector is engaged in production.”
