Kathmandu, Oct. 12
Prime Minister Pushpa Kamal Dahal Prachanda has said that the government is positive to form a high-level statutory commission or mechanism as proposed by the private sector.
The Federation of Nepalese Chambers of Commerce and Industry
(FNCCI) has proposed to form a joint high-level mechanism like an economic
reform commission led by the Prime Minister and including the representation
from the umbrella organisations of the business sector, Ministry of Finance,
Ministry of Industry, National Planning Commission and Nepal Rastra Bank to
find out immediate and pragmatic solutions to the present economic slowdown and
framework on new phase of long-term reform.
President of the FNCCI, Chandra Prasad Dhakal, said that
such mechanism with high-level legal status is needed to find solutions to the
challenges faced by the economy, primarily by the businesses and industries.
Addressing the 'National Economic Discourse' programme organised
by the FNCCI on Thursday in the Capital, Prime Minister Prachanda said that he
had already discussed the matter with Finance Minister Dr. Prakash Sharan Mahat
and it would be formed after the FM and Finance Secretary Krishna Hari Pushkar
return from the meeting of the IMF being held in Marrakesh of Morocco.
"I discussed the matter with the finance minister
immediately after FNCCI President Dhakal proposed it to me. We are positive to
work together with the private sector in improving the current economic
scenario," he said.
According to him, such a mechanism instills confidence in
the people and it solves the problems of the economy. A mechanism should be
created by having representatives from the central bank, government agencies,
private sector, experts, and the Prime Minister's Office for the collective
benefit, keeping everyone's expertise and experience at the centre.
PM Prachanda said that there is a need to move towards 'a major operation' in the next fiscal year 2024/25 by making bold decisions through the policies and programems and budget of the government.
"We wanted to make such departure in the current fiscal
year but due to time constraints, we couldn't implement that idea. I don't
think the problem will be solved by only reforming the current laws of Nepal to
improve Nepal's economy. This requires a major operation," he said.
He maintained that the government had tried to address some
immediate problems of the economy including by creating harmony between the
fiscal and monetary policies. It tried to create investment environment for
Nepalis living abroad and implemented some business reforms but the economic challenges
persisted.
"Now, we need some qualitative restructuring. For this,
private sector, government, experts should sit and review the current situation
and policies, and make a way forward. It also maintains national unity,"
said PM Prachanda.
According to Dhakal, the term of the commission will be one
year and the solution to the immediate problem will be submitted within three
months.
"The commission can be dissolved after preparing the
new generation reform plan and submitting it to the relevant agencies. The
private sector will also contribute to its operation," he said.
According to the proposal made by the private sector,
members of the commission will not be provided with vehicle facilities and
meeting allowances, meetings or other discussions will not be organised in
hotels or resorts but in the offices of the private sector or government
agencies.
Likewise, foreign aid will not be taken for running the
commission and the members of the commission will not be sent on foreign tours
in the name of exposure visits.
Stating that the government should be positive about
boosting the confidence of the private sector, Dhakal said that solutions for
the immediate and long-term challenges could be found if the public and private
stakeholders work together.
"Look at the state of the economy. The revenue is
decreasing because the private sector is not functioning. Internal debt has
been raised since the beginning of the fiscal year to finance government
expenditure. There is a high price increase," he stated.
According to him, the businesses wanted to develop a
transparent and private sector friendly system. Small entrepreneurs need more
support.
The private businesses also pointed to the need of coordination with development partners. "But application of caution while accepting such advices is necessary so that they don't cause problems for Nepali people," said Dhakal while urging that even a small loan from the International Monetary Fund should be paid now as it is likely to create risks in Nepali economy.
He urged the government and Nepal Rastra Bank to abandon the
practice of implementing myopic policies while stating that the NRB has been
targeting the stock market.
"It is basically that the general public is losing
faith in the economy and at the same time, investment and market demand have
decreased, while the market price is continuously increasing. This shows that
there is a structural problem in the Nepali economy. If we do not solve it now,
the risk will deepen," said Dhakal.
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