Nepal government forms high-level commission to address economic reforms

October 8, 2024, 03:49:52 PM |

KATHMANDU: In an effort to revive Nepal’s struggling economy, the government has established a five-member high-level Economic Sector Reform Commission. The commission, led by former Finance Secretary Rameshwar Khanal, has been tasked with submitting a detailed report outlining recommendations for economic reforms. This decision was made during a Cabinet meeting held on Monday.

Government spokesperson and Minister for Communication and Information Technology, Prithvi Subba Gurung, shared the details of the commission, which includes Prof. Dr. Ram Prasad Gyawali, Dr. Prakash Kumar Shrestha, Dr. Bishwas Gauchan, and Dr. Kalpana Khanal as members. Prof. Dr. Gyawali heads the Economics Department at Tribhuvan University, while Dr. Shrestha, a Nepal Rastra Bank official, currently serves as a member of the National Planning Commission. Both Dr. Gauchan and Dr. Khanal are prominent economists.

Minister Gurung emphasized that economic reform is the government’s top priority. “The Cabinet has decided to form a five-member Economic Reform Commission to provide suggestions on reviving the economy and to submit a comprehensive report for necessary reforms,” he stated.

Economic Challenges and Expectations

Nepal’s economy has been sluggish for over two years, and the private sector has long called for government intervention. The commission’s formation has been welcomed as a positive step, especially given the recent market stagnation caused by a contraction in demand. During the Dashain festival, usually a peak time for market activity, there was a significant drop in transactions. Imports have been limited to around NPR 130 billion, while banks and financial institutions have been unable to increase lending due to surplus investable funds stuck in the banking system.

Finance Minister Bishnu Poudel expressed optimism about the commission’s work. “This commission will consult all relevant stakeholders and provide recommendations to steer the economy in the right direction. The commission’s formation was a key component of my 100-day action plan,” he stated.

Private Sector Hopes for Revival

The private sector has been urging the government to take decisive action to stimulate economic activity, with a particular focus on enhancing investment opportunities and addressing financial bottlenecks. The Economic Sector Reform Commission is expected to play a crucial role in shaping policies that will restore growth and stabilize the economy.

With the market in a stagnant state, the government is looking to the commission for practical solutions to boost demand, improve loan investments, and enhance liquidity in the banking sector. The commission’s recommendations are expected to focus on fostering a more dynamic and resilient economic framework for Nepal.

Fiscal Nepal |

Tuesday October 8, 2024, 03:49:52 PM |