High-level commission recommends creating investment-friendly environment
KATHMANDU: The High-level Economic Reforms Recommendation Commission has submitted its report to the government, recommending the creation of an investment-friendly environment and the reduction of manufacturing costs.
Commission Chair and former Finance Secretary, Rameswar Prasad Khanal presented the report to Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, today.
On the occasion, Khanal stated that consumption and investment have declined due to low credit growth, a downturn in real estate transactions, millions of people’s savings being trapped in the cooperative financial system, delays in certain payments, challenges in recovering commercial loans, and a crisis-ridden construction sector.
Khanal highlighted the commission's conclusion that immediate policy intervention is required to improve the demand side. He added that achieving targeted economic growth necessitates structural reforms on the supply side, creating an investment-friendly environment, and reducing production costs to enhance competitiveness.
Finance Minister Paudel, upon receiving the report, expressed confidence in its usefulness for addressing the challenges faced by the country’s economy. He reaffirmed his commitment to implementing the recommendations.
“We are in the process of formulating the budget for forthcoming fiscal year 2025/26. The report has suggested identifying and resolving economic problems. We will study it seriously and implement the suggestions received in phases,” said Minister Paudel.
The government formed the commission under the leadership of former Finance Secretary Khanal to provide recommendations on measures to revitalise the country’s economy. The commission members include National Planning Commission member Prakash Kumar Shrestha, Tribhuvan University Economics Central Department Chief Ram Prasad Gyawali, economist Biswas Gauchan, and Policy Research Institute senior researcher Kalpana Khanal.
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