Political resolution must for economic prosperity: Experts

KATHMANDU, MAR 02 -

Economists and experts have said poor investment climate, lack of employment opportunities, high-cost economy and weak economic diplomacy are the key constraints to Nepal’s growth.

At a programme—“Diagnosing Nepal’s Macroeconomic Constraints”—jointly organised by the Nepal Economic Association and Garment Association-Nepal here on Friday, they underscored the need for a political resolution for economic prosperity.

Economist Chiranjibi Nepal said the country’s economic sector suffered the most since the Peoples’ Movement II. “Following the movement, economic growth and industrial productivity has dropped, making Nepal an import- and remittance-oriented country,” he said.

He said the country had never experienced such a gloomy economic condition. “For an instance, of the allocated Rs 51 billion capital expenditure, only Rs 7 billion has been spent,” he said. “This shows how serious the economic condition is.”

Economist Madan Kumar Dahal presented a to-do list to address the current economic concerns. The list included issues like declaration of plan holiday, formulation of emergency annual plan-cum-budget, and formation of a high-level powerful economic commission, among others.

Dahal said highlighted the need for devising a model for export-led and private sector-led open, competitive economy that will maximise benefits from globalisation and liberalisation.

Senior economist Bishwamber Pyakurel attributed “structural deficiency” to the sluggish economic growth. “Until the structural deficiencies are addressed, the economy cannot be vibrant,” Pyakurel said, who is also the president of Nepal Economic Association. Udaya Raj Pandey, president of the Garment Association Nepal said despite the gloomy environment, the private sector has been coming up with mega investment projects.

He alleged political leaders and bureaucrats for policy corruption. “We are just concentrating on monetary corruption at political and bureaucratic level,” he said. “The controversial decisions made by the current government are policy corruption and it is more dangerous than monetary corruption.”

Source: The Kathmandu Post