Good governance and investment friendly environment

After research, the situation is seen as a surplus of Rs 2 trillion 73 billion 52 crores. Remittances are coming in at the highest rate in history. In the 6 months of the current financial year, retention has managed to receive 7 trillion 33 billion 22 million rupees. Remittances have played an important role in the country's balance of payments.

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive.

Although the external indicators of the economy are positive, internally, it is going through a state of relaxation. It is true that the economy has not picked up the expected speed, especially because the budget and monetary policy could not be effectively coordinated or the targets set by the budget and monetary policy could not be met on time. The government has not been able to spend capital as per the target. In the 7 months of the current financial year, the capital expenditure has barely been 20 percent. This is putting serious pressure on the government's revenue. Due to non-timely payment of development construction projects, various sectors of the economy have been affected.

Revenue collection has to make a deficit budget every year when it is difficult to afford the services even of the civil servants. The government's public debt has reached nearly 50 percent of GDP, i.e. 23 and a half trillion. On the one hand, the development budget has to be made by taking loans, and on the other hand, the party that does not spend has made the economy of the country a damadol. Although the government has set a target of 6 percent economic growth in the current financial year, there is no sign of achieving the target due to high interest rates, price increase, and the turtle pace of capital expenditure.

The practice of making a development budget by taking external and internal loans and not even spending, the development process has not been able to take the expected speed. The declining GDP growth rate reflects the current state of the country's economy. The economic growth of 1.6 percent in the last financial year is also a clear sign of laxity in the country.

The main challenge of achieving economic prosperity by creating an investment environment in the country remains. Despite the liquidity of more than 4 trillion rupees in bank financial institutions, investments have not been attracted. It is true that investment has not been attracted due to the high interest rate on loans. The central bank must facilitate the money accumulated in the bank financial institutions to invest in the productive sector through its monetary policy. Only if there is effective coordination of budget and monetary policy, the economy can gain momentum. About 75 percent of the country's economy is occupied by the private sector, but due to the mismatch of economic and monetary policies, the private sector has not been able to take the expected pace.

Investment friendly environment and job creation is another major challenge today. As the industrial business is not able to take the expected speed, dependence is increasing even for most of the consumer goods including agriculture. The trade deficit has reached around 6 trillion 93 billion rupees in the 6 months of the current financial year. Existing trade deficit cannot be controlled unless there is a solid policy arrangement for import management and export promotion. Various study reports have shown that the export capacity of the country is above 10 trillion rupees annually. But it has barely been around 1 trillion 50 billion. It is too late to increase exports by promoting the products and identifying them in time with

potential. There should be an arrangement to facilitate the export of valuable herbs, mineral products, forest products as well as products that are consumed in excess in the country. The system of cheap export of raw materials from Nepal and import of final consumer goods from abroad at high cost must be ended. Despite the lack of customs facilitation in some goods, exports have not been able to increase. Arrangements should be made to ensure that only quality goods are imported and exported by setting up high-level quarantine labs at customs points. Similarly, if the illegal trade in the border area can be controlled, it will contribute greatly to the revenue. In importation of goods transaction value should be recognized rather than reference value.

Budget announcing ambitious programs but failing to improve spending patterns is affecting all sectors of the economy. As the budget implementation plan through structural reforms is weak, the progress according to the target has not been achieved.

In recent times, small and medium businesses have been the most affected. Markets and shops have started closing down rapidly, while the morale of the private sector is continuously declining. Thousands of youths are forced to leave their land barren in the country. With no future in their country, thousands of young people are forced to queue at the airport every day with their passports. A solid plan has not been made to solve problems like decline in industrial capacity and unemployment.

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 0

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 1

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 2

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 3

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 4

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 5

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 6

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 7

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 8

The long-standing Russia-Ukraine war, the Israel-Hamas conflict, and the recent increased tension in countries like the US, Britain, and Iraq and Iran are severely affecting the world's supply chain. In such a situation, in a country with an import-oriented economy like ours, the foreign exchange reserves reaching a strong state can definitely be considered positive. 9

Although the external indicators of the economy are positive, internally, it is going through a state of relaxation. It is true that the economy has not picked up the expected speed, especially because the budget and monetary policy could not be effectively coordinated or the targets set by the budget and monetary policy could not be met on time. The government has not been able to spend capital as per the target. In the 7 months of the current financial year, the capital expenditure has barely been 20 percent. This is putting serious pressure on the government's revenue. Due to non-timely payment of development construction projects, various sectors of the economy have been affected. 0