Govt boasts of curbing illegal gold import amid poor performance of major macroeconomic indicators

Published On: December 10, 2021 06:32 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 10: The government has mobilized a special task force at the Tribhuvan International Airport targeting to check the unauthorized import of gold.

Speaking at a parliamentary Finance Committee meeting on Thursday, Finance Minister Janardan Sharma said an average of 20 kg gold is being imported through air routes daily. According to him, the government authorities have been allowing the prescribed limit of the gold import by charging the customs duty.

Sharma asserted that the government will meet the targeted growth of seven percent despite facing difficulties due to torrential rains and floods. According to him, the National Planning Commission has projected the growth rate to stand at 5.2 percent this year. “The government has identified the fundamentals and is committed to achieve its target,” he said.

At a time when the country is facing an odd scenario with most of its macroeconomic indicators reeling under dismal performance, Minister Sharma has come up with the claim. The records with Nepal Rastra Bank show that remittance earnings have gone down by 6.7 percent and the country is feeling the heat of the falling foreign currency reserves.

Similarly, there is an ongoing liquidity crunch in the banking system and the government’s capital expenditure is reasonably slow. The credit growth by the banks stood at 32 percent against the projected 19 percent.

While most of the banks’ credit is reported to be channelized in unproductive sectors including imports of luxury items, Sharma tried to put off the negative comments on the issues. “The excessive credit growth is expected to yield positive results for the economy,” he said.   

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