Saturday, December 4, 2021

Govt expects private investment in infrastructure projects

 Kathmandu, Nov. 24

Minister for Finance Janardan Sharma said that the government was expecting private sector investment in infrastructure projects.

“The government is ready to join hands with the private sector in infrastructure development through public-private partnership model,” he said at a programme organised by the Nepalese Association of Financial Journalists on Wednesday.

According to him, the government needs the private sectors’ support in bringing the economy battered by the COVID-19 pandemic back on track and expedite the development and economic prosperity.

“We want your support to strengthen the economy and create more opportunities. I am hopeful that we will together create an environment for the collaboration to restore the economic activities,” he said.

However, he maintained that since the size of the economy was small, there was the dearth of resources to raise each business sector simultaneously. “The government is always ready to facilitate and incentivise the private sector enterprises. We are planning to support the most affected sectors through fresh programmes,” said Minister Sharma.

Meanwhile, he also said that it was not the shortage of the resources that was obstructing the development and progress, but the managerial skills needed to mobilise them.

Governor of the Nepal Rastra Bank, Maha Prasad Adhikari said that the central bank was vigilant about checking the financial sector moving to the wrong direction and Capital to Deposit Ratio was an instrument to make that happen.

“We have saved the banks and financial institutions through the implementation of the CD ratio. The central bank should care about the entire economy, not just a couple of groups,” he said.

According to him, clear policy, implementation of plans and participation of private sector was imperative for the development of the nation. “The government should support the private sector through better policy provision and other instruments while the latter help in implementing economic reforms and development,” said Adhikari.

Chief of the Department of Economics at the Tribhuvan University Prof. Shiva Raj Adhikari said that for the development and economic recovery, there is a need to fill the gap of misunderstanding between the private sector and government.

President of the Federation of Nepalese Chambers of Commerce and Industry Shekhar Golchha said that the liquidity crisis has discouraged investment from the private sector.

He stated that the private sector would join hands with the government in infrastructure development as well. According to him, the projects like Millennium Challenge Corporation’s Nepal project should be implemented as they could play a vital role in development.

President of Nepal Chamber of Commerce Rajendra Malla maintained that the central bank had tried to address the economic challenges through its Monetary Policy of FY 2021/22.

“But there is liquidity crisis in the financial system so the central bank should address the CD radio since many banks have it above 90 per cent. They are not in the position to invest more money,” he said.

He pledged private sector’s support to the government in development and business rehabilitation.

Acting President of Confederation of Nepalese Industries Krishna Prasad Adhikari maintained that while the public-private partnership was imperative in economic recovery, both the actors couldn’t contribute more to the mission.

“Government facilitation to the private sector is key to the early economic recovery,” he said.

NAFIJ facilitates Gautam

On the occasion, NAFIJ facilitated senior journalist Keshav Gautam for his unfettered contribution to the growth of economic journalism in the country in the past two and a half decades. FM Sharma conferred shawl and appreciation letter to Gautam.

He, together with Governor Adhikari and private sector representatives, launched ‘Arthachitra’ – an annual economic journal of the association. 


Published in The Rising Nepal daily on 25 November 2021. 

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