Govt's focus is on improving economic indicators: PM Dahal

Published On: March 12, 2023 04:45 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, March 12: Prime Minister Pushpa Kamal Dahal has said that the government is focused on improving the indicators of the economy.

Addressing the opening ceremony of the 24th Annual General Meeting of the Federation of Nepal Contractors’Associations of Nepal (FCAN) held in Kathmandu on Sunday, PM Dahal said that the government is paying attention to improving the indicators of the economy.

He said that the country has foreign reserves that can support the import of goods and services for more than 10 months, and the crisis-ridden economy is on the way to recovery.

He mentioned that it is the government's priority to speed up capital expenditure while cutting unnecessary current expenditure. Similarly, he added that the government is also focusing on increasing the expenditure of the Ministry of Physical Infrastructure and paying the remaining payments of the contractors on time. PM Dahal also said that he has given the necessary instructions to reduce the interest rate of the banks after discussing with the relevant agencies.

“While some of the countries in our neighborhood are in a difficult financial situation due to the dwindling reserves of foreign currency, we have foreign reserves that can cover the import of goods and services for more than 10 months. This shows that our economy is gradually moving from crisis to recovery,” he said, “A tight monetary policy was necessary in the past to balance the external sector, but now that crisis is over. Now the government's focus is on how to make the economic activities sustainable, and how to improve the indicators of the economy.”

He said, “I want to convey this belief to everyone. All are aware of the fact that I have discussed with Nepal Rastra Bank (NRB) and related officials and given the necessary instructions on how to keep the interest rate limited to a single digit.

Prime Minister Dahal said that while revising the law on public procurement, the participation of contractor entrepreneurs will also be ensured. He said that when the law is amended, other government officials will also be included.