December 12: Minister for Finance Janardan Sharma has said that recent challenges Nepal’s economy has been facing including the slow economic growth and shortage of liquidity have resulted from the lack of implementation of economic and business policies introduced by the government.

“Its about the lack of the institutional and legal capacity. If we address them, many of the challenges we are facing would be resolved,” said Finance Minister Sharma, addressing the “7th Newbiz Business Conclave and Awards” on Monday.

He also took strong exception to characterizing Nepal’s economic challenges as ‘crisis’. “There were comments that Nepal was going down the line of crisis like in Sri Lanka. That was wrong. We cannot call it a crisis. There are challenges that can be treated,” he said.

Minister Finance Sharma also opined that Nepal cannot do or produce everything. “We should focus on certain areas like hydropower and IT where we have our competitive advantages,” he added.

Speaking at the event as keynote speaker, Dr Nagesh Kumar, Director of the Institute for Studies in Industrial Development, India, said that rising inequalities between and within the economies has emerged as one of the major challenges for the world. 

According to Dr Kumar, there is widening inequalities of income within countries due to failure of economic growth to ‘lift all the boats’. 

“Some data show that Nepal has managed very well in addressing the widening inequality. Its social protection system is very good. It has not yet faced a disturbing trend of rising inequality and the rest of the world can learn from Nepal,” he said. 

He also said that the recent Covid-19 pandemic has exposed gaps in public health infrastructure, social protection, provision of basic services, vaccination as well as in the global economy. 

 Also speaking at the event, Shekhar Golchha, President of the Federation Nepalese Chambers of Commerce and Industry (FNCCI), said that the private sector, which coped with numerous challenges including conflict, power outage, blockade and earthquakes, is now currently facing internal challenges including the liquidity shortage. 

“We have emerged from all those crises including the political turmoils that took a toll on the economy. But, we are confident we can also overcome the current internal challenge if we work together,” said FNCCI President Golchha. 

Vishnu Agarwal, President of the Confederation of Nepalese Industries (CNI), said that the contribution of the manufacturing sector to the GDP has been falling in the last two decades. 

“We have to focus on industrialization to increase employment opportunities, boost foreign exchange reserves and accelerate the economic growth of the country,” said CNI President Agarwal. “There are some initiatives introduced by the government to promote industrialization. However, there is no satisfactory progress in the implementation of those measures.” 

Asian Paints is the main sponsor of the programme while Gods of Furniture, Metlife Insurance,  Rastriya Banijya Bank,  Nexus Evi, NLG Insurance, Dish Home, Fiber Net, Nepali Patro, President Travels and Tours, have supported the event. 

New Business Age has been organizing the Business Conclave & Awards annually since 2013 with an aim to hold discourse on crucial business and economic issues and honour business excellence by recognising quality works done by people and organizations.