Government to find solutions to the growth obstructions

Kathmandu, July 19

Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, stated that the government is solution-oriented and would address problems one by one according to their need and priority.

"We are trying to convince the business community and the public that the government is finding solutions to their problems, including those obstructing economic growth," he said during an interaction with the Nepalese Association of Financial Journalists (NAFIJ) at Singhadurbar on Friday.

Acknowledging that there are several problems to be resolved and that business confidence has eroded, DPM Paudel urged everyone to have patience until the government finds and implements better solutions. "Demand has significantly decreased, and industries are operating at less than one third of their total capacity. People's purchasing power has weakened," he noted, adding that one should remain hopeful as hope is fundamental to social harmony and future progress.

DPM Paudel emphasised that the government cannot spend much due to limited resources, making it necessary to be more cautious in resource allocation. He asserted, "This is the most stable government that could be envisioned from the structure of the current parliament."

In response to journalists' queries about the Ministry of Finance's intervention in the Monetary Policy for the Fiscal Year 2024/25, he maintained that the government had no intention of interfering with the works and processes of the Nepal Rastra Bank.

Furthermore, DPM Paudel mentioned that resolving the issue of COVID-19 insurance payments is a pending agenda for the government and that a solution would be found soon. He acknowledged that delays in the payment of COVID-19 and agriculture insurance have created a negative perception of insurance among the public.

Expressing frustration over the losses incurred by lucrative businesses like the Dairy Development Corporation and Udayapur Cement, he questioned, "How could the cement factory, which has the best raw materials and swift sales, and the dairy company, with higher demand than supply, go into loss?"

He criticised the Dairy Development Corporation for receiving financial support from the government and using it for various purposes without clearing dues to farmers. "We need to correct such practices to support farmers and find remedies for the problems in cooperatives," he stated.

 Published in The Rising Nepal daily on 20 July 2024.