First Business News Portal in English from Nepal
KATHMANDU: Prime Minister Pushpa Kamal Dahal has said that all government agencies are united to solve the current economic problem.
To keep the economy moving, he claimed that the Nepal Rastra Bank, the Ministry of Finance, and the Office of the Prime Minister were in constant communication. He claimed that the government has made progress in finding a solution to the liquidity issue and that the external sector has improved.
According to the prime minister, discussions are currently taking place to lower bank interest rates and boost revenue collection. He stated that “the government is working hard to face the current challenges.”.
The work to boost investment morale has begun, according to Finance Minister Dr. Prakasharan Mahat, both in the short and long terms.
He emphasized that the tightening of monetary policy was the cause of the current crisis, and claimed that as a result, there was no credit expansion, an increase in interest rates, a decline in economic activity, and pressure on revenue.
He asserted that, despite the desire, it is not feasible to increase capital expenditure in light of low revenue.
In conjunction with financial instruments, bank interest increased. Additionally, there have been other issues. The alternative environment is now fine. Thus, he said, the monetary policy should now be loosened. On rescheduling and lowering interest, we are in agreement.
The spread rate of the bank is being discussed, according to finance minister Dr. Mahat. He stated, “Intensive talks are taking place formally and informally, and I think your issues will be resolved soon. “.
By resolving issues with investments, he claimed, he is attempting to make the economy sustainable. Investment in loans will grow gradually. There are efforts being made to extend new loans and repay the existing ones as well, he said.
He claimed that land encroachment has now become a problem as well. He claimed that discussions with the prime minister were taking place to make this possible.
By lessening the downturn in the real estate and construction sectors, it will be possible to restore economic viability. We will work nonstop for us. We’ll build a resilient economy, he promised.
He declared that the government is prepared to end the unfavorable sentiment and advance.
Let’s turn depression into a passing phase and permanently adopt a positive outlook. Budget preparation is underway. Let’s discuss revenue and monetary policy. Let’s proceed with that in mind,” he said.
Despite some pressures and challenges, according to Finance Minister Mahat, there are no significant issues with the economy.
There is a problem with capital formation and investment right now. By resolving this issue, we are dedicated to fostering a favorable economic environment, he said.
He stated that in accordance with the short-term policy, the government aims to increase the effectiveness of capital expenditure, and there is a need to ruthlessly reduce ordinary expenditure.
Salary allowances and social security benefits are just two examples of general expenses. However, it must cut back on any unnecessary costs, he insisted.
Increasing capital spending, according to him, will make the economy more viable. He also claimed that businessmen’s investments and the economic activity they generate are a significant factor in economic growth.
At the Federation of Nepal Chamber of Commerce and Industry’s 57th Annual General Meeting, the Finance Minister addressed the audience as a special guest and stated that the government is working to find solutions to all kinds of issues.
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