Deuba urges government to promote private sector for investment boost

LALITPUR: Nepali Congress (NC) President and former Prime Minister Sher Bahadur Deuba has stated that the government should promote businesspeople and entrepreneurs to draw investment into the country.

Addressing a programme organised by the party’s Department of Financial Institution Coordination at the NC central office in Sanepa, Lalitpur on Tuesday, Deuba underscored that one of the major objectives of the seven-point agreement between the NC and the ruling CPN (UML) was to strengthen Nepal’s national economy.

He recalled that the policy of privatisation and liberalisation was introduced in 2048 BS during an NC-led government, despite facing criticism at the time. “Girija Prasad Koirala, too, was criticised for these policies. Nonetheless, we are ready to support the private sector in operating enterprises and industries. Business is carried out by businesspeople and industries by industrialists—the government’s role is not to run industries and trade,” he said, reaffirming support from the government towards the private sector.

Deuba remarked that Nepal’s economy had endured challenges posed by the prolonged armed conflict, the 2015 earthquake, the Covid19 pandemic, and the Russia-Ukraine war. He maintained that the economic foundation laid by the NC-led administration since the restoration of democracy had fostered resilience.

He briefed participants on recent improvements in the country’s external economic indicators, citing increases in the current account surplus, balance of payments, and foreign exchange reserves.

According to Deuba, remittance has grown significantly, inflation remains at roughly 4%, and credit flow to the private sector has increased by 4.6%. Imports surged by 13.1% while exports rose by 77.8% in the previous fiscal year in comparison to the corresponding year.

“Although there are signs of economic growth due to the contributions of energy, finance and insurance, and mining and mineral excavation, more effort is required to win the confidence of the private sector and general public,” he stated, calling for measures to boost production, job creation, business activities and investment in the real sector.

The former prime minister expressed concern over the government’s failure to expend a large portion of the development budget. He stressed the need for urgent structural, organisational, procedural and legislative reforms to ensure the timely utilisation of capital expenditure.

He further commented that with interest rates falling across banks and financial institutions (BFIs) due to the new monetary policy, large volumes of deposits could be redirected into credit flow, potentially motivating aspiring entrepreneurs and existing businesses.

Noting Nepal’s dependency on remittances, which he said had adversely affected the agriculture and industry sectors, Deuba pressed for government policies that could link remittances with productive activities. He welcomed the creation of the Cooperatives Authority by the coalition government, including NC, as an effort to make the cooperative sector more systematic, transparent and credible.

NC President Deuba called on the government to implement effective policy measures to ensure that individuals defrauded by illegitimate cooperative institutions recover their savings.

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