KATHMANDU: Finance Minister Prakash Sharan Mahat has said Nepal's private sector, which is focusing on businesses, should invest in production-oriented sectors and industries.
Addressing the 57th annual general meeting (AGM) of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Minister Mahat opined that the country's economy cannot improve unless investment is not concentrated in the productive sectors.
"The investment should be focused on the productive sector," Minister Mahat opined and urged all to increase production stating that the government is making effort to facilitate the investment environment.
He said there should be no hesitation in accepting that there are problems everywhere including private sector, political and administrative sectors. "The contract process is still in progress when nine months of the current fiscal year have already passed," he mentioned and stressed the need to increase efficiency and transparency.
He claimed that the government has taken the current pressure and difficulties in the economy seriously. He also asserted that there is no need to be disappointed by only looking at the economic indicators. "There is no reason for us to be too disappointed. External reserves are good. Due to the contribution and remittances of our youth who have gone abroad, the external sector is in a comfortable condition. We are in a position to achieve average economic growth," Finance Minister Mahat said.
[caption id="attachment_35205" align="alignnone" width="1000"]
Finance Minister Prakash Sharan Mahat addresses the 57th annual general meeting of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu, on Tuesday, April 11, 2023. Photo: FNCCI/Facebook[/caption]
According to him, Nepal is expected to achieve an economic growth rate of 4.1% this year according to the forecast made by the World Bank and Asian Development Bank. He further said it was positive that Nepal is able to achieve an economic growth rate above 4% while many other countries are unable to achieve such a growth rate. He opined that Nepal could make a progress when the international situation improves.
The finance minister claimed that the government is trying to improve the economy by making short, medium and long-term plans. He opined that as a short-term reform, the entire attention of the government would go towards controlling the unnecessary expenses of the current headings and increasing the capital expenditure.
Minister Mahat informed that the government is trying to reduce unnecessary expenses. He committed to reducing the expenses in the headings except for the mandatory obligations such as salaries, allowances and social security.
Minister Mahat emphasized the importance of private sector's role in making the economy sustainable and said the government only play the role of a facilitator. "The economy runs with the contribution of the private sector and ordinary citizens, entrepreneurs and businesspersons. So, the government will play the role of a facilitator, create a legal environment, ensure a competitive environment and facilitate the environment for foreign investment," Minister Mahat said.
"The government will take initiatives to solve problems such as delays and procedural complications in the bureaucracy." The finance minister in his address also informed that the government will utilise the opportunities to bring in investment in Nepal through non-resident Nepalis living abroad.
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Finance Minister Prakash Sharan Mahat addresses the 57th annual general meeting of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu, on Tuesday, April 11, 2023. Photo: FNCCI/Facebook[/caption]
According to him, Nepal is expected to achieve an economic growth rate of 4.1% this year according to the forecast made by the World Bank and Asian Development Bank. He further said it was positive that Nepal is able to achieve an economic growth rate above 4% while many other countries are unable to achieve such a growth rate. He opined that Nepal could make a progress when the international situation improves.
The finance minister claimed that the government is trying to improve the economy by making short, medium and long-term plans. He opined that as a short-term reform, the entire attention of the government would go towards controlling the unnecessary expenses of the current headings and increasing the capital expenditure.
Minister Mahat informed that the government is trying to reduce unnecessary expenses. He committed to reducing the expenses in the headings except for the mandatory obligations such as salaries, allowances and social security.
Minister Mahat emphasized the importance of private sector's role in making the economy sustainable and said the government only play the role of a facilitator. "The economy runs with the contribution of the private sector and ordinary citizens, entrepreneurs and businesspersons. So, the government will play the role of a facilitator, create a legal environment, ensure a competitive environment and facilitate the environment for foreign investment," Minister Mahat said.
"The government will take initiatives to solve problems such as delays and procedural complications in the bureaucracy." The finance minister in his address also informed that the government will utilise the opportunities to bring in investment in Nepal through non-resident Nepalis living abroad.
READ ALSO:
Published Date: April 11, 2023, 12:00 am
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