Kathmandu: Nepali Congress (NC) President and former Prime Minister, Sher Bahadur Deuba, emphasized the necessity for government support towards businesspersons and entrepreneurs to foster investment. At a programme organized by the party’s Department of Financial Institution Coordination at the party’s central office in Sanepa, Deuba reiterated that a key objective of the seven-point agreement between NC and the ruling CPN (UML) involves strengthening the national economy.
According to National News Agency Nepal, Deuba highlighted that the policy of privatization and liberalization, introduced by the NC-led government in 2048 BS, was initially met with criticism. He recalled how Girija Prasad Koirala faced similar criticisms due to these policies, yet underlined the NC’s continued support for the private sector. Deuba asserted the importance of the government’s role in supporting rather than running enterprises and industries.
The former Prime Minister acknowledged the challenges posed by prolonged armed conflict, the 2015 earthquake, the COVID pandemic, and the Russia-Ukraine conflict, which have all affected Nepal’s economy. Nonetheless, he credited the economic foundation laid by the NC-led government post-democracy restoration for maintaining economic resilience.
Deuba shared recent improvements in external indicators of the national economy, including the continuous increase in the government’s current account and balance of payment surplus, as well as significant improvements in the foreign exchange reserve. He noted a notable rise in remittance and controlled inflation at around 4 percent, alongside a 4.6 percent increase in credit flow to the private sector. Additionally, importation increased by 13.1 percent and export by 77.8 percent in the last fiscal year compared to the previous year.
Despite positive signs in sectors like energy, finance, insurance, and mining, Deuba stressed the need for further efforts to build confidence among the private sector and the public. He urged improvements in the real sector of the economy through increased production, job creation, robust business activities, and investment.
Moreover, Deuba expressed concern over the government’s underutilization of its development budget, calling for urgent reforms across structural, organizational, procedural, and legal areas to ensure timely capital expenditure.
He highlighted the potential for increased credit flow due to decreased bank interest rates following the new Monetary Policy, which could motivate entrepreneurs. Deuba also addressed the adverse impact of remittance dependency on agriculture and industry, urging government policies that link remittances with production purposes.
Additionally, he mentioned the formation of the Cooperatives Authority by the coalition government, aimed at making the cooperative sector more systematic, transparent, and credible. Deuba called on the government to implement effective policies to ensure defrauded depositors are reimbursed by fraudulent cooperatives.