July 25: Prime Minister Sher Bahadur Deuba has suggested all stakeholders not to import luxury goods, arguing that the trade deficit has increased to the extent that the country cannot afford such items.

The prime minister stressed on increasing domestic production and marketing of goods produced in the country instead of importing goods.

Addressing the 19th Annual General Meeting of the Confederation of Nepalese Industries (CNI) on Sunday, Prime Minister Deuba said there is internal and external pressure on Nepal's economy.

“It is necessary to stop importing expensive and luxurious goods produced abroad to get rid of them,” he said.

Prime Minister Deuba said that the country should focus on agricultural production as the trade deficit and foreign exchange reserves have declined to unprecedented levels.

He said that since the agricultural sector is the main pillar of the country's economy, commercialization and mechanization of the agricultural sector should strengthen the roots of economic growth. He was of the view that the development of this sector can eliminate poverty and economic inequality in the country.

The prime minister also said that he expects the support of the private sector in economic activities that earn foreign currency. Prime Minister Deuba also urged to substitute the use of petroleum products by increasing the use of electricity in industries.

Moreover, he urged the industrialists and businessmen not only to focus on areas of ​​immediate profit but also in the long term development of the country. He urged them to increase export by utilizing the raw materials within the country, and increase the investment in strengthening the foundation of the country's economy.

Prime Minister Deuba said that the government is ready to work hand in hand with the private sector to prevent further deterioration of the country's economy and bring it back on track. He made it clear that the government is always committed in providing the private sector with the necessary policy arrangements and infrastructure facilities to do business and asserted that economic development.

He made it clear that the government is carrying out various legal, policy, and institutional reforms to create a proper investment environment for the private sector, and to create an environment in which enterprises and businesses can be conducted simply and easily.

Prime Minister Deuba said that the monetary policy of the current financial year has come to support the budget. He said that the objective of the monetary policy is to support the development of the country's agricultural, manufacturing, and export industries.