The debate on whether private sector investment and privatization is right or wrong for the economic development of the country is still going on. Experts have been debating open economy and privatization policies for years.

No matter what the debate is, the practice of the last three decades does not advocate state-controlled economy as an alternative to prohibiting investment by the private sector.

After the political change of 2046, the open liberal economic policy adopted by the government, preference for the private sector and privatization are not beyond criticism. The open economy and privatization practiced by the government formed in 2048 is the foundation of the current economy, especially those who believe in the open market economy have been claiming. 

The left wing and some nationalist political forces are questioning the economic policy of the Congress by making the past privatization of factories and industries the main issue.

2051 During the inauguration of Nepal-Bangladesh Bank in Kathmandu on 24th of May, Minister of State for Finance Mahesh Acharya of the Girija Prasad Koirala-led government said that the policy of privatization has been adopted to remove the financial burden on the government. 

Nepal-Bangladesh Bank was the eighth commercial bank in the country. The bank was opened with the joint investment of private banks of Nepal and Bangladesh. According to the strategy taken by the government for economic development, it was claimed that private sector investment has been brought in from Bangladesh as well. The government seemed to have adopted a strategy to create jobs by increasing private sector investment and increasing the size of taxes received by the state. 

In this background, Minister of State for Finance Acharya held the view that allowing the opening of the bank inaugurated by Prime Minister Girija Prasad is a part of the financial sector reform. He said at that time, "If the excessive spending by the government in the unproductive sector is not controlled, inflation will affect the interest rate and export of goods." The government gives crores of rupees annually for operation but does not generate income, and it is still being claimed that many industries and factories were privatized at that time.

Prime Minister Koirala said that there is a possibility of joint investment between Nepal and Bangladesh while trying to give confidence to the foreign private sector at the bank opening event. He pointed to the government's policy of bringing in foreign investment and said, "The operation of the bank will support interregional economic activities."

Acharya presented the data of Nepal's debt of 90 billion 32 years ago. At that time, Acharya had said, 'If the government expenditure is not controlled for 3-4 years, there is a possibility that the country will fall into a very big financial quagmire.' He informed that 2 private banks will be added in the coming year and said, "If unhealthy competition starts, banks will not be successful." He asked the bankers to open banks in rural areas as well. The issued capital of Bangladesh Bank was 12 crores and the paid up capital was 6 crores .