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Thu, April 18, 2024

Awakening hope in the country’s economy

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KATHMANDU: Initial doubts that Nepal's economy will reach a state of collapse like that of Sri Lanka have been removed. The latest data released by Nepal Rastra Bank (NRB) has shown that the external indicators of the country's economy have improved significantly. [gallery columns="2" size="full" link="file" ids="35217,35206"] Along with this, Prime Minister Pushpa Kamal Dahal, at the recent 57th annual general meeting (AGM) of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in the capital and Finance Minister Prakash Sharan Mahat boosted the morale of the private sector by saying that although the economy is under some pressure, there was no need to worry. As a result of some improvements in the economy, bank interest rates are decreasing. Its positive impact will improve the investment ambience. As the problems of the private sector are addressed, the morale of entrepreneurs increases, the economic cycle becomes vibrant and the economy takes its positive course. Indicators of gradual improvement in areas such as balance of payment (BOP), foreign exchange reserves, remittance inflow and trade deficit have started to return to the economy, but due to the low revenue collection, it is seen that there is still a lot of effort required to mend the challenges facing the economy. Owing to the impact of the recession, the banking sector is under pressure all over the world and some have collapsed in the middle, but the Nepali banks are safe due to the strict policy of the central bank. Nepal Rastra Bank Governor Maha Prasad Adhikari has clarified that Nepal's banking sector is safe and cannot be ruined by a small shock, but such small shocks should not be ignored. This trust will add enthusiasm to the private sector. However, it should not be forgotten that the economy is in the early stages of recovery. Not all results of reform are achieved immediately. Inflation of 6.7% in economic growth of 4.5% is a big challenge. To deal with it, the central bank should not only use monetary instruments but also increase economic activity, the government's policies and programmes should be immediately reformed, as per the requirement of the market. Along with the external improvement of the economy, it is necessary to increase the internal demand. Especially increasing production within the country, balancing its internal demand and encouraging exports will make the economy vibrant. Increase in employment and production will make it robust. This will lay the foundation for economic growth and create environment conducive to domestic as well as foreign investment. By RSS READ ALSO:    
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MARCH 2024

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