Kathmandu, Apr. 6:
The fifteenth plan (Fiscal
Year 2019/20 – 2024/25) has estimated that the private sector would invest Rs.
5,135 billion, 55.5 per cent of the total investment needed, in the five-year
period.
As per the projections of
the National Planning Commission (NPC) – the apex planning body in the country,
about Rs. 9,246 would be invested in the next five years.
The NPC maintained that in
order to achieve the targeted economic growth and prosperity and make Nepal a
developing country by 2022 and a middle-income country by 2030, investment of
that size was required.
The highest investment from
the private sector is expected in energy and water, transportation and
communication, real estate and manufacturing industries.
About Rs. 755 billion would
be invested in energy and water from the private sector. Similarly, Rs.733
billion, Rs. 689 billion and Rs. 553 billion would be invested in
transportation and communication, real estate, and manufacturing industries
respectively.
About 90 per cent of the
total investment in hotel and restaurants, and real estate and business
activities is expected from the private sector.
Trade and manufacturing
sectors are other areas which demand high private sector investment over the
next five years, according to the draft of the plan which will come into
execution after getting approval from the Cabinet in the near future.
Likewise, the government is
expected to put in highest stakes in energy and water, transportation, storage
and communication, education and agriculture and forest. It will invest Rs. 966
billion in energy and water, Rs. 1,053 billion in transportation, storage and
communication, 294 billion in education and 413 billion in agriculture and
forest. All these sectors will witness more public investment than the private
one.
Sector-wise, the government
will invest more in agriculture while the private sector in industry and
service sector.
Similarly, about 13.8 per
cent investment in agriculture, 3.3 per cent in industry and 5.3 per cent in
service is expected from the cooperatives sector.
Experts have mixed reactions
over the size of private investment expected over the five years.
Former Vice-Chairman of the
NPC Dipendra Bahadur Chhetri said that expecting more from the private sector
was a positive sign but the government needed to create better investment and
business climate to attract the desired investment.
He suggested creating
opportunities for the youth in the village, maintaining reliable energy supply,
improving the policy regime and executing better regulations for the service
sector, if the government had to attract higher investment from the private
sector.
Business community, which is
encouraged by the recent policy reform made to improve the business environment
in the country, said that the private sector would invest more but said that
the government needed to put its efforts to increase the efficiency of the
government institutions and ensure the protection of investment.
The government is also
hopeful that the policy reform will attract more Foreign Direct Investment
(FDI) and the country will see more economic activities happening.
Estimates
of the total investment
|
Areas
|
Amt (Rs. in bn)
|
Govt (%)
|
Private (%)
|
Coop (%)
|
|
Agriculture
|
813.75
|
51.6
|
34.6
|
13.8
|
|
Industry
|
3,154.61
|
42.0
|
54.7
|
3.3
|
|
Service
|
5,278.02
|
35.4
|
59.3
|
5.3
|
|
Total
|
9,246.39
|
39.1
|
55.5
|
5.4
|
Source:
Draft of the 15th plan
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