New govt will introduce second tier of economic reforms: Mahat

KATHMANDU, Feb 25: Minister without portfolio Dr Ram Sharan Mahat has said the government would usher in second tier of economic reforms to make the country´s economy more vibrant, dynamic and stronger.

Speaking at the inaugural ceremony of the three-day Nepal Economic Summit 2014 here on Monday, Minister Mahat said it is high time the country prioritized reforms agenda.
Stating that the economic reform agenda of 1990s was introduced in the stewardship of his party (Nepali Congress), Mahat, however, said economic agenda lost momentum thereafter.

Country´s economic growth stood between six to eight percent after the reforms introduced in 1990s. “Economic growth declined to 3-4 percent in the latter years,” he added.

The five-time finance minister also expressed commitments to bring reforms in partnership with the private sector.

Mahat, who was one of the architects of the eighth five-year plan, said agriculture, tourism and hydropower would be the priority sectors of the new government.
The plan implemented right after the political changes of 1990 had brought about sweeping policy changes.

The summit participated by experts in economy, investment and banking, among others, is jointly organized by the government and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

Speaking at the summit, FNCCI President Suraj Vaidya said he was hopeful that the new government would bring back the country´s economy into the right track. He, however, expressed dissatisfaction over wrangling among political parties over key ministerial portfolios like finance, industry, energy, commerce and supplies, and agriculture, among others.

“The government should adopt the policy of right people at right place while appointing ministers,” Vaidya said, adding, “Only knowledgeable ministers can drive the ministry efficiently.”

He also said the government hastened to endorse anti-money laundering law at a time when several key laws, including the Industrial Enterprise Act and Electricity Act, have been gathering dust.

Addressing the summit, president-designate of Confederation of Indian Industry (CII) Ajay S Shriram shared that Indian people want to bring more investment in Nepal.

The conference has various sessions focusing on reforms for investment-friendly environment, what attracts investors, turning agriculture from subsistence to commercial venture, energy, and making Nepal one of the best tourist destinations, among others.

The panelists in each session include national as well as international experts of the respective sectors.

Officials of FNCCI said they organized the summit to make Nepal a lucrative destination for investment.

Source: REPUBLICA