Kathmandu, Sept. 15
Prime Minister Pushpa Kamal Dahal Prachanda said that the
economy is still under pressure. If we don't take some necessary and concrete
steps, the situation would be worse, he said while speaking at the President's
Banquet programme organised by the Confederation of Nepalese Industries (CNI)
in the Capital on Friday evening.
"There is still a challenge in gorging harmony in
fiscal policy and monetary policy. There is a need to make reform in fiscal and
monetary policy as well as the way we think and work," he said while
adding that he believed that without a close collaboration with the private
sector, the country wouldn't be able to achieve the economic and development
targets.
So, the government is serious about making policy reforms to
facilitate the private sector, he maintained.
However, PM Prachanda stated that due to policy hurdles and
operation of state machinery, the government is unable to implement all of its
vision.
"The private sector would be taken on board in
government-led economic and development initiatives. We are effortful for
effective collaboration with the business stakeholders," said PM
Prachanda.
He also said that the CNI's suggestions for the 16th
plan and import substitution are commendable.
President of the CNI, Rajesh Agrawal, said that the contraction
in demand has affected all business sectors and shortage of liquidity and
illegal imports has troubled the entrepreneurs.
"There is a situation of 'balance sheet recession' and
'consumption downgrade'; businesses have to focus on their financial health and
maintaining funds for future crises," said Agrawal.
According to him, the government and the Nepal Rastra Bank
have to make some policy interventions to save businesses and inculcate impetus
to the economy. Increasing the demand of industrial product is the primary
solution.
"Failure to take some concrete policy steps such as
mobilising liquidity in the financial system and rescuing interest rates were
not taken immediately, we can't save economy from falling into recession,"
he maintained.
According to him, unconditional acceptance of the conditions
set by the foreign donors is also the reason behind the current economic
slowdown.
Agrawal said that CNI has been an important partner of the
government in national development, business expansion and economic growth. "We
have been providing suggestions for policy reforms as well. We want to take
Nepali products to the domestic and international markets. We now want to
enhance the capacity of our producers and Swedeshi Campaign is in operation for
the same," he said.
We have also been working with the development partners to
design and implement good standards in products and upgrade quality, he
maintained.
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