Presenting a paper titled ‘Transformation of Nepal Economy Agenda for Growth and Social Equity’ at a consultation meeting with stockholders on Thursday, Rameshwar Khanal, finance ministry secretary, pointedly highlighted the government´s priorities in fighting the challenges facing the nation.
“Creating a favorable environment for private investment is crucial to minimize the impact of the global financial downturn and lay a solid foundation for rapid growth in the immediate future,” said Khanal at the meeting which was held in the lead up to the Nepal Development Forum meeting scheduled for May 12-14 in Kathmandu.
“Acceleration of growth and creating jobs are achievable only by ensuring a conducive business environment,” Khanal added.
The strategy document has laid stress on improving law and order, policy stability, favorable labor law reforms, an easy entry and exit policy, improving the tax system and improving labor skills, among other things.
Further highlighting the strategy, Khanal stressed the need to transform the agriculture sector—the mainstay of the Nepalese economy, improve delivery of economic and social services, improve the welfare of citizens and allow one and all to enjoy the benefits of growth.
“Reform in land ownership, use of improved seeds and technology and market connectivity will be focused on for rapid transformation of the agriculture sector,” said Khanal.
The strategy also includes improvement in implementation of development activities for greater efficiency in government spending and sustained macroeconomic and financial stability.
The government would also go ahead with programs focusing on the development of telecommunications and information technology, roads and co-operatives, and increased funding for education and the health sector are also stressed.
Khanal said a policy of improving procurement, public management and the monitoring and evaluation system as well as increased accountability is also to be pursued to enhance the government´s implementation capacity.
“The government will continue with efforts to maintain macroeconomic stability and keep expenditure geared to support growth and reduction of poverty, providing needed infrastructure and equitable social services,” Khanal added.
Also speaking on the occasion, Deependra Bahadur Kshetri, governor of Nepal Rastra Bank, suggested the government not forget to pay due attention to the development of the public and private sectors so as to generate employment opportunities in the country.
Coming down heavily on the government’s economic policy, Prakash Sharan Mahat, an economist, alleged that domestic as well as foreign investors are shying away due to lack of a government policy to boost private sector investment.
“Investments have been limited only to real estate and the stock market due to lack of opportunities for investment in other productive sectors, and government activities have given out an adverse message among investors,” Mahat said. He also alleged that the government is protecting criminals instead of protecting investors.
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