KATHMANDU: MPs of Rastriya Swatantra Party (RSP) visited the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Secretariat in Teku, Kathmandu and held a discussion with FNCCI officials on the current situation of the economy, issues that surfaced in it and their solutions.
The delegation of lawmakers led by RSP Parliamentary Party leader Dol Prasad Aryal held a discussion with FNCCI officials including FNCCI President Shekhar Golchha, Vice President Chandra Prasad Dhakal.
On the occasion, FNCCI President Golchha gave detailed information about the current situation of the economy. He said that although there has been some improvement in the external sector, the internal health of the economy is worrying.
Compared to some countries in SAARC, Nepal's economy is strong in terms of foreign exchange reserves, inflation, internal and external debt ratio. However, indicators such as high interest rates, liquidity crisis, slowdown in the construction sector show that the health of the economy is worrying, he said.
The economy is in a severe crisis since the government's economic policy is not compatible with the central bank's monetary policy, he asserted and added the current problem exists due to liquidity crisis since government did not properly analysed before formulating policies after Covid 19 subsided, FNCCI President Golchha said.
He said, "We could neither bring enough foreign investment nor foreign loans. Problems surfaced in the economy as the political parties and the government became distribution-oriented." He expressed his view that the country cannot move forward unless the development expenditure is increased.
Golchha suggested that the issue of effective regulation of cooperatives and microfinance institutions should be raised in Parliament in an effective manner. He also blamed the lack of monitoring of cooperatives and microfinance institutions as a cause of the current problem in the economy.
He expressed his view that existing laws and regulations were responsible for hindering the attraction of internal and foreign investment in the country. FNCCI has identified the laws and Acts that are hindering the development of investment and business in the country and has submitted them to the government, Golchha said and urged the visiting RSP members to help amend them.
He informed that the federation has made public National Economic Transformation (NET) 2030 with the aim of increasing the country's economy by 100 billion dollars in the next 10 years and creating additional 2.2 million jobs, which the government has pledged to implement. He also sought the support of RSP to make it a success. The FNCCI President said, "We have prepared a vision paper as a way to achieve these objectives through 100 initiatives, and we have submitted a document to the government with suggestions on the preparations to be made for upgrading from a least-developed country status to a middle income developing nation after 2026." He also requested the MPs to discuss the vision paper in the parliament.
He lauded the efforts of RSP members for the interaction with the private sector and emphasized the importance of continuing with such issue-based discussions.
On the occasion, RSP leader Aryal asserted that they visited the FNCCI Secretariat to discuss and study issues of the country's economy, industries and businesses.
In the discussion, FNCCI Senior Vice President Dhakal stressed the need for changing the way of looking at the private sector and suggested the government should hold discussions with the concerned private sector before making policies related to the economy, industry, and business. Further, he suggested that the parties should make a habit of leaving their own interests while making decisions.
FNCCI Vice President Ram Chandra Sanghai and Treasurer Sukunta Lal Hirachan urged the RSP delegation to visit the manufacturing industry, identify their problems and raise voices in the Parliament. The economy is facing problems as there is a trend of saving money in banks and taking interest, even government agencies do that, they claimed.
On the occasion, RSP lawmakers inquired about the problems of private sector, causes of industry slowdown, labour market problem, challenges of creating employment opportunities, measures to be taken to reduce the trade deficit, development of agricultural sector and efforts to attract foreign investment among others.
The discussion programme was coordinated by FNCCI Director General Gokarna Raj Awasthi.
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Compared to some countries in SAARC, Nepal's economy is strong in terms of foreign exchange reserves, inflation, internal and external debt ratio. However, indicators such as high interest rates, liquidity crisis, slowdown in the construction sector show that the health of the economy is worrying, he said.
The economy is in a severe crisis since the government's economic policy is not compatible with the central bank's monetary policy, he asserted and added the current problem exists due to liquidity crisis since government did not properly analysed before formulating policies after Covid 19 subsided, FNCCI President Golchha said.
He said, "We could neither bring enough foreign investment nor foreign loans. Problems surfaced in the economy as the political parties and the government became distribution-oriented." He expressed his view that the country cannot move forward unless the development expenditure is increased.
Golchha suggested that the issue of effective regulation of cooperatives and microfinance institutions should be raised in Parliament in an effective manner. He also blamed the lack of monitoring of cooperatives and microfinance institutions as a cause of the current problem in the economy.
He expressed his view that existing laws and regulations were responsible for hindering the attraction of internal and foreign investment in the country. FNCCI has identified the laws and Acts that are hindering the development of investment and business in the country and has submitted them to the government, Golchha said and urged the visiting RSP members to help amend them.
He informed that the federation has made public National Economic Transformation (NET) 2030 with the aim of increasing the country's economy by 100 billion dollars in the next 10 years and creating additional 2.2 million jobs, which the government has pledged to implement. He also sought the support of RSP to make it a success. The FNCCI President said, "We have prepared a vision paper as a way to achieve these objectives through 100 initiatives, and we have submitted a document to the government with suggestions on the preparations to be made for upgrading from a least-developed country status to a middle income developing nation after 2026." He also requested the MPs to discuss the vision paper in the parliament.
He lauded the efforts of RSP members for the interaction with the private sector and emphasized the importance of continuing with such issue-based discussions.
On the occasion, RSP leader Aryal asserted that they visited the FNCCI Secretariat to discuss and study issues of the country's economy, industries and businesses.
In the discussion, FNCCI Senior Vice President Dhakal stressed the need for changing the way of looking at the private sector and suggested the government should hold discussions with the concerned private sector before making policies related to the economy, industry, and business. Further, he suggested that the parties should make a habit of leaving their own interests while making decisions.
FNCCI Vice President Ram Chandra Sanghai and Treasurer Sukunta Lal Hirachan urged the RSP delegation to visit the manufacturing industry, identify their problems and raise voices in the Parliament. The economy is facing problems as there is a trend of saving money in banks and taking interest, even government agencies do that, they claimed.
On the occasion, RSP lawmakers inquired about the problems of private sector, causes of industry slowdown, labour market problem, challenges of creating employment opportunities, measures to be taken to reduce the trade deficit, development of agricultural sector and efforts to attract foreign investment among others.
The discussion programme was coordinated by FNCCI Director General Gokarna Raj Awasthi.
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Published Date: March 22, 2023, 12:00 am
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