April 18, 2024, Thursday
Nepal 1:37:26 pm

FM Mahat views economy vibrant

People feel it problematic

The Nepal Weekly
February 20, 2024

By TNW correspondent

Finance Minister Dr. Prakash Sharan Mahat claimed the other day: the Nepali economy is vibrant and pursues a positive upward journey. People in the street and market do not think so: they find series of problems in it.

Three factors making the FM optimistic are: recent growth in remittance – 27 % surge -, tourism earning – million tourist arrival in 2023 – and increasing foreign exchange reserve – over 1. 8 trillion rupees. All of these are not the results of measures undertaken under the auspices of Dr. Mahat.

They are results of eroding adverse impact of COVID 19 over the years and check on import introduced earlier, said a senior economist.

“Dr. Mahat actually could not undertake any policy measures for making the economy responsive to people’s problems and difficulties in investment, price rates, supply and demand of credit and market. He simply presided over the Finance Ministry.”

He had an opportunity to address problems of unemployment, high inflation, deteriorating purchasing power of consumers and disappointment of investors. But he pursued only formal ways of handling economy.

As a result of it, youths – 2000 per day- are leaving the country in pursuit of employment abroad, investors feel discouraged, agriculture and industry sectors are sidelined and shop owners are facing series of disorders such as lack of enthusiasm in demand side.

The country’s economy suffers from problems such as unproductive investment, abuse of public resources, misunderstanding between government and private sector. The factors have affected the way development expenses are handled in the country.

Foreign aid has also not flowed as pledged by various countries. The investors do not feel encouraged to invest more because of unstable policy regime of government. The FM has not been able to create a climate of trust among investors.