Kathmandu, May 22: Former Prime Minister Dr Baburam Bhattarai has suggested the government to reprioritize the national pride projects and accord additional priority to some critical projects like north-south corridors and airports.
Given the crisis created by the coronavirus pandemic, it would be challenging to generate resources so we should select some of the pride projects and move ahead to complete them at the earliest so they could support in the development of other economic sectors, he said while speaking at a webinar on economy organised by the Confederation of Nepalese Industries (CNI).
According to him, corruption control, re-ranking of the large infrastructure projects, increasing the government loan size could be primary options to generate resources to invest in the development projects.
"Our Gross Domestic Product to-government loan ratio is still very low which is an opportunity for us, and we need to tap on it," he said. Government debt-to GDP in Nepal is expected to reach 32.50 per cent by the end of 2020.
To address the job loss due to the coronavirus pandemic, he recommended giving priority to the development and expansion of the micro, small and medium enterprises (MSMEs) and promote technical education in schools and colleges.
"A stimulus package is needed to rehabilitate the businesses affected by the pandemic and labobur intensive sectors should be sought to accommodate the returnee migrant workers and those who lost jobs due to the crisis," he said.
Former Vice-Chairman of the National Planning Commission Dr Shankar Sharma suggested the government to use the diplomatic channel to adjust the Nepali migrant workers in the respective destination country. "Missions there can help Nepali workers to find jobs in new cities or companies. They can hold dialogues with the governments of the destination countries," he said.
Dr Sharma suggested providing about 25 per cent wage subsidy for formal sector workers.
"However, the government can set parameters like the private sector companies should be registered with the Social Security Fund to avail of the benefits," he said. According to him, it might cost Rs 6-7 billion to the government.
Country Director of World Bank in Nepal Faris Hadad-Zervos said since the impact of the coronavirus on the economy was uncertain both the government and private sector should be prepared to face the challenges.
He said that the economy was overwhelmed with the supply and demand shocks, job losses and severe vulnerability of the poor. "In the long-term resilience is the alternative," he said.
President Emeritus of the CNI Binod Chaudhary said that the private sector and government should go into action soon. According to him, cost-free economic stimulus policy of the government could lead the banking system to the verge of collapse. "We should be cautious about the stimulus. There is no real cash flow in the system. This is not a healthy sign," he said.
Published in The Rising Nepal daily on 23 May 2020.
Given the crisis created by the coronavirus pandemic, it would be challenging to generate resources so we should select some of the pride projects and move ahead to complete them at the earliest so they could support in the development of other economic sectors, he said while speaking at a webinar on economy organised by the Confederation of Nepalese Industries (CNI).
According to him, corruption control, re-ranking of the large infrastructure projects, increasing the government loan size could be primary options to generate resources to invest in the development projects.
"Our Gross Domestic Product to-government loan ratio is still very low which is an opportunity for us, and we need to tap on it," he said. Government debt-to GDP in Nepal is expected to reach 32.50 per cent by the end of 2020.
To address the job loss due to the coronavirus pandemic, he recommended giving priority to the development and expansion of the micro, small and medium enterprises (MSMEs) and promote technical education in schools and colleges.
"A stimulus package is needed to rehabilitate the businesses affected by the pandemic and labobur intensive sectors should be sought to accommodate the returnee migrant workers and those who lost jobs due to the crisis," he said.
Former Vice-Chairman of the National Planning Commission Dr Shankar Sharma suggested the government to use the diplomatic channel to adjust the Nepali migrant workers in the respective destination country. "Missions there can help Nepali workers to find jobs in new cities or companies. They can hold dialogues with the governments of the destination countries," he said.
Dr Sharma suggested providing about 25 per cent wage subsidy for formal sector workers.
"However, the government can set parameters like the private sector companies should be registered with the Social Security Fund to avail of the benefits," he said. According to him, it might cost Rs 6-7 billion to the government.
Country Director of World Bank in Nepal Faris Hadad-Zervos said since the impact of the coronavirus on the economy was uncertain both the government and private sector should be prepared to face the challenges.
He said that the economy was overwhelmed with the supply and demand shocks, job losses and severe vulnerability of the poor. "In the long-term resilience is the alternative," he said.
President Emeritus of the CNI Binod Chaudhary said that the private sector and government should go into action soon. According to him, cost-free economic stimulus policy of the government could lead the banking system to the verge of collapse. "We should be cautious about the stimulus. There is no real cash flow in the system. This is not a healthy sign," he said.
Published in The Rising Nepal daily on 23 May 2020.
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