Our efforts insufficient to reform economy: PM Dahal

Prime Minister Pushpa Kamal Dahal has said the ongoing efforts to reform the economy are not enough and the economy would encounter serious crises if reforms measures were not applied immediately.

Addressing a programme organized by the Confederation of Nepalese Industries (CNI) on Friday, the PM said the government made efforts to reform the economy through the current fiscal year's budget but that too is insufficient and expected results were not achieved in the implementation.

"The first objective of the government is to bring about economic transformation," the PM said while urging all the stakeholders to contribute from their respective positions. On the occasion, he said that developing a strong nation by ensuring a prosperous country though economic development is the need of hour.

Industrialization, production growth, quality enhancement of domestic goods and services and exports promotion would contribute to the national economy, the PM added. He further viewed economic prosperity could be achieved through partnership with the private sector.

"I am pretty clear that sustainable development can be achieved through partnership with the private sector," the PM mentioned. For this to translate, the incumbent government is forging collaboration with the private sector in an effective manner.

The Head of the Government argued that the government is serious about the economic reforms measures and expected support from all. "We have to bring about reform in the economy. I appeal to the private sectors for partnership. The government alone cannot do this job," PM Dahal urged.

At the programme, CNI President Rajesh Kumar Agrawal said market demand is dropping and in overall, the economy suggests slowdown, causing the loss in morale in the private sector. "High bank rates, cash-flow issues, loss in production and postponement of investment plans are among the issues in the economy."

Illegal trading is always a threat to industries and the government, according to Agrawall who said the illegal trade has caused a significant revenue loss to the State. He advised the government to effectively implement the provision of labeling of details of imports and distributors to combat illegal trade.

He warned the nation is expected to witness more economic slowdown and a significant setback in economic growth if the existing market situation continues. He urged the government and Nepal Rastra Bank to come up with policy interventions to promote the market demand and financial and monetary encouragement.

According to him, there is a fall in consumers' purchasing power. If prompt measures are not put in place to address the situation, the economy will face recession after some time. Immediate reforms in monetary, financial and structural policies are needed for achieving economic reforms.

The CNI President stressed that the Central Bank should come with a policy of reducing interest rates to promote investment. Government expenditure in infrastructure projects can be increased through a financial policy. Programmes of economic assistance and re-tabulation of loans are necessary, targeting industries affected by the economic slowdown.

Agrawal stressed on stringent action of Nepal Rastra Bank for economic reform. Government must adopt the policy of internal production rather than import, he suggested.