CNI urges government to bring medium and long term strategy to face economic crisis

Published On: April 13, 2020 03:19 PM NPT By: RSS

KATHMANDU, April 13: The Confederation of Nepalese Industries (CNI) has urged the government to bring extensive medium and long-term plan and strategy to tide over the adverse situation in the aftermath of the coronavirus pandemic.

A CNI delegation made this suggestion to the government during a meeting on Sunday with the Minister for Industry, Commerce and Supplies, Lekhraj Bhatta, the State Minister Motilal Dugad, and the Minister for Energy, Water Resources and Irrigation, Barshaman Pun.

The CNI team on the occasion urged the government to take immediate steps to save the economy and render it dynamic, saying the national economy was passing through a very adverse situation owing to the COVID-19 pandemic. It drew the attention of the government to the need of adopting appropriate monetary and fiscal policy so as to revive the economy, suggesting implementing expansionary fiscal policy.

It also suggested directly handing over the amount equivalent to approximately 3 per cent of the GDP to the people working in the informal economy, the impoverished and the deprived communities. Likewise, it suggested decreasing the business and industrial investment cost at least by 5 per cent, retaining the CCD at 85 per cent and encouraging the commercial banks for a 7 per cent interest on fixed deposits and a 5 per cent interest on general deposit.

The CNI believes that these measures will pump up approximately Rs 150 billion liquidity in the economy. Similarly, CNI called for extending to minimum five years the present term set by Nepal Rastra Bank (NRB) of including industries running in loss for up to two years under close scrutiny.

CNI also urged the government to ease the movement of workers on the basis of the identity cards issued by the industries as well as to make arrangements for the invoice issued by the industries as the 'permit pass' for the transportation of raw materials and finished goods. The CNI delegation also on Sunday met with the NRB Governor and the Finance Secretary to discuss on its suggestions.

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