December 16: Finance Minister Janardan Sharma has called upon the private sector to operate government-owned industrial establishments that have been shut down due to various reasons. He said that the government was ready to cooperate with the private sector in this regard. He made such remarks durng a conference organized to discuss post-COVID-19 economic revival strategies

Addressing the inaugural session of the conference organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on December 15, Finance Minister Sharma said that economic prosperity cannot be achieved without the participation of the private sector.

He also shared that the government is amending laws that are detrimental to the development and progress of business establishments. He also asked the private sector to provide suggestions to solve the current liquidity crisis and the government will help accordingly. 

The finance minister also claimed that recent political events are attributed to low capital expenditure and liquidity crisis. He said it would be resolved by February. Until the second week of December,  the total capital expenditure of the country is 6.13 percent. Finance Minister Sharma said that such expenditure will increase from the next three months of the current fiscal year. There is lack of liquidity in the market due to the government's inability to increase development expendiure. 

According to Sharma, trade deficit cannot be reduced by selling electricity alone but it is possible by increasing domestic consumption of electricity. The government will bring a policy to increase electricity consumption by providing electricity to industries at concessional rates, asserted the minister.

Arjun Prasad Pokhrel, secretary at the Ministry of Industry, said the government would increase investment in industrial infrastructure. Stating that domestic, small and micro industries are the backbone of the country's economy, industrial areas are being developed targeting such industries. The discussions are being held with all the three levels of government to simplify the process of registering such industries.

Neelam Dhungana, deputy governor of Nepal Rastra Bank, said that the central bank is concerned to resolve the liquidity problem in banks and financial institutions. It is not possible to switch to CCD ratio now from CD ratio, said Dhungana The central bank would not affect the business of the capital market, but would only check where the loans of banks are headed to.

FNCCI President Shekhar Golchha said that despite the risk of COVID-19, the economy is witnessing positive changes which should be supported through government policies. The government should not delay in prioritizing the economic revival. He also demanded the government to endorse the US-funded MCC project, as the country has not received any foreign aid.