Newly appointed Finance Minister Dr. Prakash Sharan Mahat has said that his first priority is to improve the country’s economy which is facing serious trouble.
While meeting a delegation of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Sunday, Dr. Mahat assured that he would move forward with the suggestions and cooperation of private sector umbrella organisations as he is committed to improving the economic crisis facing the country.
He said, “I won’t let businessmen’s morale sag. I will be in regular consultation with you. I look forward to your full support in fulfilling my commitment to improve the economy.”
On the occasion, FNCCI President Shekhar Golchha congratulated the newly appointed Finance Minister and wished him success on behalf of the entire private sector. Dr. Mahat was appointed as Finance Minister on Friday.
According to the FNCCI, Golchha briefed about the latest economic situation of the country during the meeting.
He suggested that the interest rate should be reduced by injecting liquidity into the market.
For this, the central bank and the government should take a joint initiative to reduce the interest rate by providing liquidity, he said. President Golchha emphasised to forward the work by increasing liquidity in cooperatives and microfinance.
He also suggested increasing the capital expenditure citing that it is very slow. Capital expenditure stands at only 25 per cent by the end of March, 2023. “At present, the revenue of the government is low and it is difficult to meet recurrent expenses. For this, it should be spent by raising external loans,” he noted.
He said that the loan taken in this way should be used only for development expenses.
The delegation suggested that illegal imports from the border should be stopped by fully using the state mechanism and that it would also help in revenue accumulation.
He said that initiatives should be taken with donors to bring in money from abroad and asked to hold a meeting with local donors as well.
President Golchha suggested that the private sector should not suffer under the pretext of raising revenue and that the morale of the private sector should be raised by creating an environment.