Speaking at a function organized by Independent Business News on global financial crisis and its impact on financial sector Sunday, they stressed that the challenges posed by these two problems are greater than the possible effects of the global financial crisis on the domestic economy.
Presenting a paper, Radhesh Pant, president of Nepal Bankers’ Association said that of the nine sectors that have been identified as risky in the present scenario, remittance is the most venerable sector that can have severe negative impacts on the back of global financial crisis.
Pant also said that squeezing consumption expenditure seen in the western countries has clearly indicated that our export, which has increased in recent months, might see a steep downturn in the coming months.
He further stressed that the government needs to pay due attention for accelerating reforms in the economy to boost business confidence, which has nosedived at present.
Economist Dr Chiranjibi Nepal shared a similar view and said that any problem in the remittance sector, the lifeblood of Nepali economy, will bring a major disaster and urged the government to bring a clear policy on income tax and increase capital expenditures.
President of Nepal Chambers of Commerce and Industry Surendra Bir Malakar said it is worrying that the global financial crisis has begun affecting domestic employment urged the government to take private sector into confidence to combat the situation. Malakar also refuted allegations that the private sector is preventing market prices from coming down.
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