Lalitpur, July 30: Nepali Congress (NC) President Sher Bahadur Deuba has emphasized that the government must encourage businesspersons and entrepreneurs to boost investment and drive economic growth.
Speaking at a program organized by the NC’s Department of Financial Institution Coordination at the party’s central office in Sanepa on Tuesday, Deuba highlighted that one of the key objectives of the seven-point agreement between the NC and ruling CPN (UML) was to strengthen the national economy.
Reminding the audience of the NC-led government’s historic economic reforms, Deuba said, “The policy of privatization and liberalization was introduced by the NC-led government in 2048 BS. Although we faced criticism, including from within the party, we remained committed to supporting private sector-led growth.”
He recalled that former Prime Minister Girija Prasad Koirala had also endured criticism for spearheading those reforms, but stressed that the private sector remains central to economic development. “Business is done by businesspersons, and industries are run by industrialists. The government’s role is not to run businesses, but to facilitate them,” Deuba asserted.
Despite setbacks from events such as the armed conflict, the 2015 earthquake, the COVID-19 pandemic, and the Russia-Ukraine war, Deuba noted that the economic foundation laid by successive NC governments had helped Nepal maintain economic resilience.
He pointed to positive trends in external economic indicators, noting continuous surpluses in the current account and balance of payments, improvements in foreign exchange reserves, and a notable increase in remittance inflows. Inflation has remained contained at around 4 percent, while credit flow to the private sector has increased by 4.6 percent. Furthermore, imports rose by 13.1 percent, and exports surged by 77.8 percent in the last fiscal year compared to the previous one.
However, Deuba warned that more needs to be done to strengthen the real economy. “We must boost production, create jobs, and attract more investment. Only then can we improve public confidence and truly energize economic activity,” he said.
Expressing concern over the government’s poor development budget spending, Deuba called for urgent reforms at structural, organizational, procedural, and legal levels. He also urged the enactment of new laws to ensure timely and effective capital expenditure.
Deuba noted that the decline in interest rates following the recent monetary policy should help increase credit availability, which could stimulate entrepreneurship and business growth.
He also cautioned against Nepal’s overreliance on remittances, which he said has negatively affected the agriculture and industrial sectors. He urged the government to create policies that channel remittance income into productive investments.
Regarding the cooperative sector, Deuba welcomed the establishment of the Cooperatives Authority, saying it would help make the sector more systematic, transparent, and credible. He also pressed the government to take immediate action to ensure that depositors duped by fraudulent cooperatives recover their money. #nepal #nepalicongress #deuba
