Finance Minister hints at fresh relief to businesses

Kathmandu, Dec. 12

Finance Minister Bishnu Prasad Paudel has indicated that the government could announce fresh relief programmes to support private sector enterprises hit hard by the COVID-19 pandemic.
He expressed readiness to launch new programmes and instruments to cure the bruises made by the crisis on business and industry.
"If currently implemented programmes are not sufficient, I welcome suggestions from and discussion with the private sector," he said while speaking at the fifth general meeting of the Nepal Association of Financial Journalists (NAFIJ) in the Capital on Saturday.
Minister Paudel stated that the government was ready to support them in every possible ways and instruments.
Meanwhile, he urged the businesses and entrepreneurs to use the available relief and discount programmes announced by the government and the Nepal Rastra Bank (NRB).
"Government, private sector, social organisations and media must work together to fight against the COVID-19 pandemic," he said.
FM Paudel maintained that the government had accorded priority to both life and livelihood protection.
According to him, the government will bring in quality vaccine at reasonable prices while support would be channelised to productive sectors to enable them fight against the blows of the pandemic. 

Governor of the NRB Maha Prasad Adhikari said that the economic recovery from coronavirus pandemic fallout was better than expected as macroeconomic indicators were good and external sector was stable.

There is enough liquidity in the system to mobilise loans as demanded while inflation is contained at 3.79 per cent.

“However, some sectors are affected so severely that it will take many years for them to recover from the shocks of the crisis. Therefore, we must advance economic activities with adherence to COVID-19 safety protocol,” he said.

Governor Adhikari urged the media to contribute to good governance, investment attraction, private sector and entrepreneurship promotion and economic growth.

President of Nepal Chamber of Commerce Rajesh Kazi Shrestha suggested FM Paudel to launch a white paper on the economic status of the country to help prepare better planning for the future.

“We want more support from the government. It can be in the form of discount in income tax and customs duty,” he said.

He also suggested increasing the threshold for the VAT payment to Rs. 10 million against the current Rs. 5 million.

Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry Chandra Prasad Dhakal said that the business community must stand together to face the natural and economic crisis while the government should facilitate the business community in relief and recovery efforts.

Likewise, Senior VP of the Confederation of Nepalese Industries Bishnu Agrawal said that the entrepreneurs who contribute 60-70 per cent tax and more than 80 per cent employment must not be damaged by media.

“Businesses contribute to economic growth and jobs and their role in socio-economic development is massive,” he said.

Senior VP of NCC Rajendra Malla stressed on farmers’ access to market and adoption of technology to benefit the farmers.

Published in The Rising Nepal daily on 13 December 2020.