Government to undertake legal, policy intervention to address cooperative issues

Published On: May 15, 2024 09:35 AM NPT By: Republica  | @RepublicaNepal

Kathmandu, May 15: The government has pledged to take necessary initiatives to address issues of the banking sector as well as financial institutes, microfinance, and cooperatives.

The government assured this through its policies and programmes for the upcoming fiscal year (FY 2024-25) presented by President Ram Chandra Paudel before a joint sitting of the Federal Parliament on Tuesday.

The government will come with new legal provisions at the policy level to address the issues plaguing banks, finances, and cooperatives, the president said.

As per the policies and programmes, the government plans to promote healthy competition, supervision and regulation by implementing feedbacks received from various quarters to address the issues in such institutes and the capital market.

It has assured of the facility of refinancing and restructuring of loans for microfinance debtors and adjusting the cooperative policy as per the need of time. 

Cooperatives will be mandated to get connected to the Cooperative and Poverty-related Management Information System. Cooperatives with government ownership will be facilitated for integration and savings and credit cooperatives will be encouraged for going for a merger, according to the government’s new policies and programmes.

The government aims to integrate scattered small capital to implement big projects and seek the involvement of private investment companies to operate and manage closed industries such as the Gorakhkali Rubber Industry, Butwal Spinning Mills, and Hetauda Garment Factory.

The government is to pursue policies for ensuring just, balanced and estimable revenue distribution.     
Grants will be transferred with conditions based on the objective criteria while integrated laws will be formulated for determining the mobilization and sharing of natural resources, investment, and profit-sharing among the three-tier governments, as well as for resolving disputes among them.

The government has adopted a policy of mobilizing innovative instruments of development finance with additional legal provisions for the encouragement of private capital mobilization. It promises to undertake legal and structural interventions to enhance the domestic and external investment atmosphere and to expand it.

The government also pledged to facilitate bringing foreign loans and other mixed forms of investment. "Nepal's country rating will be concluded in the upcoming fiscal year. The approval process for domestic and foreign investment will be further simplified, making it convenient and predictable through the implementation of the automated digital system," states the new policies and programmes read out by President Poudel.     

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