BUTWAL, March 5: Nepal Rastra Bank (NRB) Governor, Chiranjivi Nepal, has called for proper utilization of bank loans taken by the general public and entrepreneurs.
Referring to the growing trend of utilizing loan for other than the intended purpose, the central bank has warned it was keeping an eye on loan utilization.
Speaking at a program organized to celebrate the 9th anniversary of the fortnightly business magazine, Business Khabar, in Kathmandu on Sunday, the governor said political stability will bring investment-friendly environment in the country. “We encourage entrepreneurs to invest wisely,” he added.
He also said that political stability will open the gateway for industrial and economic development of the country. “Provincial governments must consider the strengths and weaknesses of their state for economic development,” Nepal said, explained that Nepal should make the most of political stability like other countries like China, Singapore and Indian state of Bihar did.
“It is now the responsibility of both central and provincial governments to attract investors. We should learn from Bihar which has maintained high economic growth because of efficient planning,” explained Nepal.
Stating that Province 5 will see unprecedented economic development after the Gautam Buddha International Airport comes into operation, Governor Nepal said that entrepreneurs should invest in hotels and tourism enterprises considering the rich tourism prospect of the region.
The governor also refuted allegations that the country's economy was going downhill. “I agree there are few problems. However, this does not mean that the entire economy is suffering. The industrial sector is doing well, the service sector has improved, and same is the case with overall economic activities in the country. Paddy production has dwindled. There are few problems which can be solved,” he added.
Governor Nepal also said that federalism has given the country an opportunity to usher in an economic revolution throughout the country. “Sad thing is, funds disbursed to local units have not been mobilized yet,” he added.