Kathmandu:National Planning Commission (NPC) Vice Chairman Dr. Gunakar Bhatta has highlighted the importance of aligning public and private sector investments to complement each other rather than compete, aiming for balanced, inclusive, and decentralized national development.
According to National News Agency RSS, Dr. Bhatta stressed during a program organized by the Society of Economic Journalists-Nepal (SEJON) that enhancing the effectiveness and returns of public investments is crucial. He suggested that the government needs to foster an investment-friendly environment by providing necessary infrastructure and facilities in areas that have not yet attracted private sector interest.
Dr. Bhatta emphasized the necessity of decentralizing development efforts in Nepal to ensure that development benefits reach underdeveloped regions and provinces. He advocated for a comprehensive evaluation of economic returns, social benefits, and environmental risks when making public investments, warning against neglecting environmental concerns in project selection and implementation. Specifically, he pointed out the risks of constructing multiple hydropower projects on the same river, which could exacerbate damage during natural disasters.
In a presentation titled ‘Strengthening Public Investment in Nepal Priorities and Strategies,’ former Chief Secretary of the Government of Nepal, Baikuntha Aryal, argued for productive, result-oriented public investment focused on priorities. Aryal underscored the need for the government to concentrate on building basic infrastructure, developing human capital, and promoting private sector investment rather than investing across all sectors.
Aryal identified agriculture, tourism, energy, information technology, and small and medium industries as potential investment areas. He noted the necessity of transitioning agriculture from subsistence to commercial production and emphasized the importance of technology, storage, and supply systems. In tourism, he advocated for branding, packaging, and strategies to attract high-spending tourists.
Aryal also suggested a review of public corporations’ investment and management, highlighting that 16 out of 45 public corporations in Nepal are in deficit. He proposed categorizing these entities based on their strategic importance and performance and managing those in weak economic states through options like management contracts, privatization, or closure.
During a group discussion, former General Manager of Nepal Drug Limited, Kailash Kumar Paneru, stressed the importance of providing autonomy to strengthen public institutions while ensuring necessary support and accountability. Industrialist Shashikanta Agrawal remarked on the historical reliance on foreign grants for establishing public corporations, suggesting collaboration with international companies and encouragement of the private sector where feasible.
Arpita Nepal, co-founder of Samriddhi Foundation, emphasized the need for a clear government framework for industrial investment, suggesting that investments should focus on essential areas rather than all industries, based on government priorities.