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To be honest, when our economy came to the point of Covid, it was growing at a very fast pace. Then came covid. Does your life last or not? what happens We were in a dire situation.
After that some problems appeared in our economy . But the kind of thinking that was made to solve that problem was wrong. Everyone should accept these things. Because an economy that is growing and moving forward, the state went ahead to shrink it by taking policy at that time . Such as: discouraging imports and reducing consumption patterns. This kind of policy is what has led to this situation now.
After that, although the economic growth rate is low, now the government is expecting an economic growth rate of 6 percent through the latest budget. But the preparations of the government for this have not been done or the actions to be done have not been done? It is seen here .
which is increasing the current expenditure, the current expenditure is about 61 percent . Current expenditure is increasing every year . This has brought the biggest problem . Another thing is that the capital expenditure is decreasing every year. That is, the development and construction expenditure has decreased. That has also brought problems. Another financial management expense has increased. In the last budget, financial management has been kept more than capital expenditure. I'm hearing that
will continue to grow steadily in the coming year . Now, I am hearing that our financial management expenses will be around 6 trillion rupees in the coming financial year. What the state did last time, it is clear that instead of increasing the domestic product, it was working to stave off the debt by taking internal debt .
The private sector must be taken into confidence . However, when it comes to the budget, it is always said that the private sector is taken into confidence . The biggest thing is trusting the private sector? First of all, there is a problem with it. The government has not been able to take the private sector into confidence . Don't take the name of
, what the former prime ministers said when they spoke recently is that until our politics is stable, the economic policy will not be stable . has openly said . Having said that, the priority is in politics and not in economic policy. When there is no priority in economic policy, moving forward in the economic sector is not a priority, until such situations occur in this country. It is also difficult to achieve a growth rate of 6 percent.
When talking about policy, policy comes. Some good policies come . But the policy is not clear, not consistent . The biggest thing is that our laws are not predictable. They come for a short time . When a government changes after a personality, policies change . Due to this, industrialists are not in a position to come forward by making investment morale.
Let me give you a small example on this matter . It said that startups like this would be given loans up to 25 lakh rupees in the previous financial year at 2 percent interest rate. But that was not implemented in the financial year. It has been implemented in this financial year to give Rs. 25 lakhs. But the interest rate increased by 1 percent in this financial year. The concept introduced by a state has not yet started, one percent increased the interest rate, why ? Will the state earn? Why did the interest rate increase? While the state is confused at one percent interest rate to increase the entrepreneurship of startups, new entrepreneurs . Ministers should be very aware of this. It should be taken seriously .
Now talking about the policy of the industry and commerce sector, the policy of the steel industry two years ago and the change in the two years now, the frequent changes in the automobile sector and the changes in the policies for various industrial industries.
Milk production has increased in Nepal. Now, as the milk cannot be consumed here, the import of dairy products has been stopped . But now the media is talking about opening the import of dairy products under the pressure of the Indian government . India is talking about bargaining in the way of not giving the PSI certificate for cement, shoes and plywood. Where is the national interest to be seen after
? Where is the national interest to be protected? This should be seen first. What is national interest? It should be clear.
Here, does the state want industry or business? The state should be clear about this first. Yes, definitely need business . Business should be done after industry . Because not everyone does industry . After I produce the industry, I have to trade and sell . How much of it cannot be produced in our country must be brought from abroad.
When it comes to Foreign Direct Investment (FDI), FDI goes where it is comfortable. Money flows where it slopes. The state should think about that. Because in FDI, everyone has to look at the policy . Searches very easy . He wants to invest in the country which is easy.
As I said before, our policies are not clear . With every leadership change comes a policy change . For that reason, it is not easy for FDI to come to us. The state tried recently through investment conference, but we all know what the result is today .
Our commitments are unclear . Let me present another example . Chitwan is also a tourist city. Before this investment conference, the federation discussed with the secretaries of the government which laws should be amended. In the amendment we recommended, two/four things were cut . For example, since long ago, the industry in the tourism sector had demanded that the hotel industry should also be given facilities and concessions like other industries . We recommend . We did it right then . But later, when the decision was made, the decision of the hotel and amusement park was withdrawn. At that time, the government makes a commitment to the private sector. What happens when an agreement is broken? The state's commitment to bring investment should be clear. That must be irrefutable. Foreign investors see it that way.
In Nepal, our Lakshmi Group has started the production of Hyundai vehicles from last Baisakh. Hyundai Motor Company Korea has shown interest in investing in it. But they are asking after studying the policy . What about investment? Here Lakshmi Group can produce by own investment. But what Korean companies really want is that they are looking for the possibility of exporting after investing .
Now our industry is running with the capacity to produce four/five thousand vehicles. They are studying to go ahead with the capacity to produce 50 thousand to one lakh vehicles annually. The Korean company is studying the policies of Nepal. It has no place to answer us when asked .
If the decision is given to the hotel industry as an agreement, where will we trust if it does not change? The gap between the private sector and the government, rulers and administrators must be bridged.
If a foreigner asks another entrepreneur how is the investment environment in Nepal, of course, as a citizen, he will say it is good, but his demeanor does not say that it is good . Because his pains are many .He has many troubles .
The private sector had to change its way of seeing, understanding and thinking . It had to be changed politically. There is also a big gap in the bureaucracy. There are more problems with the bureaucracy . Unless this changes, there will be no investment environment in Nepal. I did not think that he would earn by correcting it with a pen . It had to be changed in Nepal. I have already decided that Sadar, tomorrow it will earn and eat, I did not think that a millionaire will become a billionaire . After becoming a millionaire and a billionaire, he lives in this country. We should think that it will bring prosperity to this country.
- An edited part of the opinion given by the senior vice president of the Federation of Nepalese Industry and Commerce, Shrestha, in the program 'Chitwan Chintan' organized by Kantipur Media Group.
