First Business News Portal in English from Nepal
Chandra Prasad Dhakal
KATHMANDU: In recent months, Nepal has witnessed the initiation of extensive economic reforms, marking positive shifts in several economic indicators. Despite the accumulation of foreign currency reserves and noticeable export growth, challenges persist within our domestic economy. Acknowledging the positive trend in tourist arrivals, the domestic economic landscape still grapples with obstacles.
While liquidity in banks has increased, the expansion of loan facilities has not kept pace, signaling a need for further financial support. Discouraging interest rates have affected both consumers and investors, highlighting the importance of fostering confidence in the economy. Confidence, a cornerstone of economic vibrancy, must be a top priority.
Addressing the recurring challenges in the economy demands a shift from short-term measures to long-term solutions. Incremental improvements may offer temporary relief, but a sustained approach is imperative for meaningful change.
To bring about such change, collaboration between the government and the private sector is crucial, focusing on both structural and legal framework challenges. Establishing a dedicated mechanism involving the private sector is essential for comprehensive, long-term solutions. This joint effort will contribute significantly to the nation’s sustained economic vibrancy.
Timing is crucial in implementing improvements. The current economic structure emphasizes the importance of private sector involvement. A unified mechanism addressing specific private sector problems is necessary, with the establishment of a permanent mechanism for ongoing support. This approach aims to make Nepal’s economy more dynamic over the long run.
It’s not that improvements are absent; rather, the timing of these improvements is critical. The extended economic downturn has impacted the morale of investors and consumers alike.
In challenging circumstances, not everyone is ready to invest. However, injecting investment into the economy, even during hardships, is vital. The government’s expeditious reforms are the first step towards improvement. Efforts to boost public morale through implemented reforms are vital, reflecting the government’s commitment to reform.
Private sector involvement, backed by confidence and support, can significantly enhance morale. Coordination and collaboration between the government and the private sector, along with specific programs, are necessary to create an investment-friendly environment.
While high-interest rates can impede business operations, the current economic challenges extend beyond interest rates, involving various legal and procedural aspects. Identifying interest rates as the sole problem oversimplifies the situation.
Despite the external sector’s growth, internal economic improvements must parallel external advancements. Focusing on specific issues is necessary, and emphasizing interest rates alone might not effectively address the challenges.
As the largest bank in Nepal, Global IME Bank plays a significant role in global financial institutions. Adapting to the evolving banking landscape is crucial, with a focus on digital and virtual banking for customer-friendly services, especially amid economic challenges.
With branches in all 77 districts of Nepal and a growing global presence, Global IME Bank aims to be among the top 1,000 global banks. Staying competitive in the digital age requires aligning banking policies with the ongoing evolution.
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