Monday, May 16, 2016

Govt focused on alleviating poverty: PM

Kathmandu, May 15: Prime Minister KP Sharma Oli Sunday said that the government was focused on alleviating poverty through modernization and commercialization of agriculture, and entrepreneurship promotion.
Inaugurating the first National Microfinance Member’s Summit in the capital, PM Oli said, “This is the government of poor and is committed to reducing poverty by 2030 as per our international commitment. Specially, the government is working to make significant changes in the agriculture sector within two years.”
He lamented that even though the country was rich in natural resources, it was still least developed and said that endeavours were underway to change the pathetic situation and lead the country towards the path of development.
Reiterating the government’s prime agenda were the implementation of the new constitution, post-quake reconstruction and economic progress, the Prime Minister claimed that the government’s policies and programmes for the Fiscal Year 2016/17 was the reflection of its pledge to the development.
PM Oli praised the microfinance institutions for their role in promoting entrepreneurship, generating employment and bringing people out of poverty. “Microfinance companies are helping people to achieve financial progress even with the mobilisation of small amount of money.”
But, you should be very much careful that the money should go to the right place and right hands, the PM warned. He reminded the microfinance companies that their campaign was for social transformation, not profit-oriented.
Nepal Rastra Bank governor Dr. Chiranjivi Nepal, directed the microfinance companies to extend their services to the rural and remote areas. “When you are more focused on the urban areas, it creates aberrations. Therefore, go to the villages, you will find creative hands and entrepreneurial minds.”
He informed that the central bank had directed to establish Consumer Protection Fund in order to reduce the risk in the microfinance sector.
“The NRB is mulling to launch a mapping of the country. Once the mapping is completed, we will decide the areas for the microfinance to go,” Dr. Nepal stated.
He urged the microfinance companies to offer skill development and entrepreneurship training to those whom they mobilize loans.
Shankar Man Shrestha, chairman of the Summit organizing committee, said that the conference said that the conference would be a sharing ground of varied microfinance members and would strive towards finding ways to better serve the ultra-poor and marginalized sections of the country.
Dr. Binod Atreya, executive director of Micro-Finance Promotion and Supervision Department at the NRB, said the capital increment plan for the microfinance companies was on cards.
The first ever two-day national level Microfinance Member’s Summit has brought over 600 participants, of which 500 are women microfinance members from 75 districts.
The participants told their stories that began with poverty and social exclusion and ended with prosperity of their families. They suggested discouraging the practice of obtaining loans from more than one microfinance institutions.
About 22 female microfinance members shared their experience with the microfinance services.
The conference is being organized by the principal Microfinance Institutions (MFIs) and co-ordination of the Centre for Self-Help Development (CSD).
Forty-one microfinance banks, 25 non-government organizations and about 100 cooperatives are offering microfinance service across the country. They altogether are catering service to 1.8 million families.

According to the latest data, about Rs. 300 billion loan was mobilized by the microfinance institutions and the repayment rate was 99 per cent. 

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