Policy stability could be expected to usher in economic development after formation of new government: Prof Gyanwaly

KATHMANDU: Head of the Department of Economics at Tribhuvan University, Prof Dr Ram Prasad Gyanwaly, said people have expected stability through a long-term national economic policy once the new government is formed.

Dr Gyanwaly said policy stability could be expected to usher in economic development and political stability after the formation of a near two-thirds majority government, and suggested the new administration could prioritise the reconstruction of damaged infrastructure during the Gen Z movement and create an atmosphere conducive to private sector investment.

Talking to Rastriya Samachar Samiti (RSS), Prof Gyanwaly said a full-term government was in sight, which would be instrumental in bringing long-term economic policy and activities to spur development. "In its five-year term, the new government should provide clear policies and stability so that people's expectations of change and development can be realised," he stressed.

He said the formation of a near two-thirds majority government marked the end of the trend of recurring changes of government, which, he argued, had caused uncertainty in the industrial and investment sectors. "Once the reconstruction of damaged infrastructure is prioritised, it helps to create an atmosphere conducive to investment. Investment promotion later contributes to making the economy dynamic," Prof Gyanwaly said.

He, however, observed that private sector investment had yet to improve, while a slight increase had been recorded in government investment recently. He said the private sector needed a morale boost from the government because it had suffered greatly during the uprising last September.

"Building trust and stability is urgent to restore private-sector morale," he said, adding that the government can assure private-sector investors of their safety, thereby helping to make the economy more dynamic.