Minister Khanal calls for self-review behind low growth

By A Staff Reporter,Kathmandu, Dec. 2: Finance Minister Rameshore Prasad Khanal has said that a serious self-review is needed to understand the reasons behind the failure in achieving the expected economic growth in the country.

He made this remark at a programme organised on the occasion of the 29th anniversary and award distribution ceremony of the Society of Economic Journalists-Nepal (SEJON) on Monday.

He said that political dissatisfaction and instability have negatively impacted development and economic activities in recent years.

"No matter how political discontent manifests itself in the country, there should be a common understanding that the wealth created by anyone here belongs to Nepal,” he added.

FM Khanal also emphasised the need to be aware of the authenticity of information and its impact amid the increasing use of technology.

Stating that incorrect and unverified information coming from the media sector can have an adverse impact on international relations and the investment environment, he stressed that the media should play a responsible role.

“Proper messages and accurate information develop positive thinking in the private sector, and strengthen the morale of investors. Therefore, the sensitivity of information flow must be understood,” he clarified.

He said that the government has been moving forward with work by increasing the budget for large infrastructure projects in recent times. 

He also mentioned that work is under way to resolve the existing problems of the capital market and to regulate the services and facilities of former distinguished officials by bringing them into a legal framework.

On the occasion, Minister for Industry, Commerce and Supplies Anil Kumar Sinha said that economic strengthening, growth in domestic production, expansion of productivity, and employment creation will be the main goals of the government in the coming days.

“The government is trying to move forward by holding elections on time, maintaining good governance and focusing on service delivery,” he said.

He said that work is being done by considering the private sector as the most important partner to increase economic activity and that reform programmes are being carried out without forgetting the spirit of the Gen Z movement.

Governor of Nepal Rastra Bank Prof. Dr. Biswo Nath Poudel said that the main challenge facing Nepal's economy is liquidity management. 

He said that the inability to expand investment in large infrastructure despite sufficient liquidity and low interest rates within the banking and financial sector is a matter of concern.

Governor Dr. Poudel said that the expected results have not been achieved due to the failure to effectively implement the provisions maintained in the monetary policy. 

He said, "Banks themselves should be proactive in fulfilling the objectives of monetary policy. Fiscal and monetary  policies will become more flexible, and banks and financial institutions should be prepared to take advantage of that."

Reminding that all sectors are equally responsible for improving the economy, Governor Poudel said that it is necessary to increase government’s capital expenditure in view of the current economic situation.

President of the Federation of Nepalese Chambers of Commerce and Industry Chandra Prasad Dhakal said that misinformation spread through social media and media has adversely affected the investment environment and morale of the private sector in Nepal. 

He reminded that the private sector had to bear huge losses due to misinformation during the Gen Z movement, and said, “We recently experienced an example of how destructive misinformation can be in the Gen Z movement.”

According to Dhakal, the media plays an important role in attracting domestic and foreign investment. 

Stating that good governance, corruption control and smooth service delivery are essential for an environment that encourages investment, he said that the private sector has been making these demands to the government for a long time.

Birendra Raj Pandey, President of the Confederation of Nepalese Industries, said that the state should take immediate steps to boost the declining morale of investors.

“The external sector is good, there is sufficient liquidity in banks and financial institutions, and interest rates have been gradually decreasing. But investment has not been increased,” he said. “All problems in the economic sector must be resolved so that the overall economy is not affected.”

President of the Nepal Chamber of Commerce Kamlesh Kumar Agrawal said that the country's economic situation has not fully improved after COVID-19 and that industrial establishments have become sensitive in terms of security in recent times.

Stating that the morale of the private sector is declining day by day, he stressed that the state should make it mandatory to guarantee investment security.

He said that entrepreneurs are becoming frustrated due to the large number of youths migrating abroad, entrepreneurs being blacklisted, and difficulties in credit flow and the tax system. 

Journos awarded  

On the occasion, various awards and prizes were distributed to journalists in different categories.

According to SEJON, the SEJON Award, worth Rs. 100,000, was presented to Pawan Timalsina of Naya Patrika daily and Bhuvan Poudel of OnlineKhabar.com.

Similarly, the SEJON Award for print media, worth Rs. 50,000, was presented to Bimal Khatiwada of Kantipur daily, and the award for digital media was presented to Sunil Kunwar of Bizmandu.com.

In addition, the Late Sanjay Neupane Research Fellowship, 2082, was awarded to Bhesh Raj Belbase of Gorkhapatra Daily. The fellowship carries a prize of Rs. 100,000.

On the occasion, Dr. Bhola Chalise Liberal Journalism Award, worth Rs. 100,000, was presented to Sunita Karki of Annapurna.com and Uddhav Thapa of Nepalnews.com.