The deteriorating state of the economy needs to be improved

The Morang Trade Association has discussed the current state of the economy, its causes and solutions among the stakeholders here today.

Stating that the economic condition of the country is in crisis due to economic pressure, balance of payments deficit and lack of liquidity, the industrialists pointed out the need for the government to take effective steps to improve the deteriorating condition of the economy.

 During the discussion, economist Dr Bhesh Prasad Dhamala stressed on the need for immediate improvement in the issues of declining foreign exchange reserves, rising balance of payments deficit, declining remittances, lack of liquidity and trade deficit.

"In the current situation, the government should play an effective role in making the economy run smoothly," he said.

Dr. Dhamala, an economist, said that the lack of liquidity in the country was due to the short-sighted and unclear policy of the government and Nepal Rastra Bank. Stating that the country's production has been affected due to lack of skilled manpower, he stressed on the need to reduce the tax range and discourage tax collection under new headings to keep the economy afloat as the bank's interest rate hike has also affected production.

Stating that Nepal's economic policy has not been effective, Prof. Dr. PK Jha said that most of the allocated budget is spent in unproductive sectors. Stressing on the need to increase investment in the productive sector, he said that the state should be serious in this regard as entrepreneurship is the backbone of sustainable development. Stating that the government should be serious about the crisis in the industry, trade and business sector, Prof Dr Jha said that entrepreneurship would be developed in the country if priority was given to small and big industries.

He said that foreign capital should be mobilized in the country in the name of raw material by giving priority to indigenous technology. He said that the current problem has arisen due to self-interested decision.

Dr. Sandesh Das Shrestha expressed the belief that such discussions would be a guide for the government to keep the country's economy afloat. Vice President of the Association Vikas Vegwani, General Secretary Anil Sarda, Amit Sarda and others highlighted various aspects of the current problems of the economy.