Investment climate key to boost economy

KATHMANDU, MAR 10: 

The country needs a conducive investment climate to witness double digit growth, said finance minister Barshaman Pun.

Addressing the inauguration of Himalayan Bank’s head office in Kamaladi, Kathmandu, today, he also claimed that the investment climate has been improving. “Since this government was formed seven months back, the country has not seen any major bandhs and strikes,” he said, adding that the government, apart from the constitution drafting process and peace process, is concentrating on economic growth. 

“But all political parties should agree on a common minimum agenda to improve the economy and boost growth,” claimed Pun, adding that they are also trying to forge an alliance with all the political parties to work on a Common Minimum Economic Programme. 

“The Common Minimum Economic Programme and conducive investment climate will boost the confidence of investors,” the finance minister said. “Once the confidence of investors get a boost, domestic and foreign investors will find Nepal a suitable place for investment.”

He also suggested the banks and financial institutions to look for new avenues to invest in nd to focus on Small and Medium Enterprises (SME) that will not only generate employment but also help boost economic growth.

“However, there is a gap in SME lending, according to central bank governor Dr Yubaraj Khatiwada. “Those micro entrepreneurs, who have graduated from the borrowings from microfinance, are bankable but banks and financial companies have yet to reach them,” he said.

“The financial sector is passing through three major problems, he categorically said, adding that these were the short-term liquidity comfortable situation against long-term lending demand, problems in good corporate governance and the weak regulators who could not ensure fair market practices and growth.

“Regulators should be stronger, transparent and competitive for the financial sector to grow,” the governor said, suggesting the banks and financial institutions to look for ways — like bonds — to translate short-term liquidity situation comfortability into a long-term lending demand.

Source: THT