KATHMANDU: The High-Level Economic Reform Recommendation Commission has officially submitted its interim report to the government, outlining urgent measures to stabilize and strengthen Nepal’s economy. The commission’s chairperson, Rameshwor Khanal, handed over the report to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Wednesday at the Ministry of Finance.
The Ministry of Finance confirmed that the report prioritizes actionable reforms to make the economy more dynamic. Key recommendations include settling government liabilities and outstanding payments, facilitating financially distressed borrowers, and introducing legislation to regulate trade credit.
The report also highlights the need to address challenges in the cooperative sector, where issues have caused widespread concern. It recommends legal frameworks to limit the operational scope of savings and credit cooperatives to individual local governments and restrict membership to natural persons only. Furthermore, it proposes measures to prevent single individuals from accumulating excessive loans beyond 10% of a cooperative’s total share capital.
Other notable recommendations include:
– Disaster Recovery: Accelerating the reconstruction of infrastructure damaged by events like the Jajarkot earthquake.
– Tourism Support: Simplifying processes for Indian tourists traveling via land routes to boost inflows.
– Capital Expenditure: Deploying empowered teams to monitor and resolve issues in large-scale projects allocated more than NPR 100 million.
– Health Insurance: Revising and increasing the premium rates.
– Loan Restructuring: Allowing businesses impacted by the COVID-19 pandemic a one-year window for loan rescheduling.
Additionally, the commission advises prioritizing payments for completed construction projects while refraining from awarding new contracts in the current fiscal year. It also recommends including new projects in the next budget only if financial resources are assured.
The commission has stressed the need for public-private partnerships in asset management and suggested legislative measures to establish such frameworks.
Formed last October, the High-Level Economic Reform Recommendation Commission comprises experts and private sector representatives tasked with providing strategic advice to improve Nepal’s economic outlook. The government is expected to review the report and announce its formal response in the coming weeks.