May 8: Experts have emphasized the need for transparency in politics as the pre-requisite for improving economy. Most of the economists, bankers and experts participating in the Nepal Business Summit-2023 organized by the Confederation of Banks and Financial Institutions (CBIFIN) in Kathmandu on Sunday said that economy and politics cannot be considered apart from each other.

Issues ranging from the current challenges faced by the economy to the future roadmap for prosperity, potential investment areas for Nepal's sustainable economy, challenges faced by Nepal's financial sector from a regional perspective and protection from this to strengthen the economy, Nepal's current situation and future path for socio-economic reforms were discussed separately during the summit.

Most of the participants in the discussion emphasized that reforms in politics should be the first step for economic prosperity.

According to them, the Nepalese economy, which was improving from 1990 to 2001, started deteriorating after 2005. Experts say that despite the end of political crisis including the armed conflict in 2006, the lack of good governance has been the main factor behind the failure to improve the economy.

Economist and member of the House of Representatives Dr Swornim Wagle said that after 2008 the structural balance is deteriorating. He pointed out the need for enterprise-friendly policies through reforms in the public expenditure system.

Speaking at the same program, a member of the National Planning Commission, Dr Ramesh Chandra Poudel claimed that Nepal should have taken a leap in the manufacturing sector from 1990 to 2000, but nothing was done in that direction. According to Poudel, the country entered the service sector from agriculture abruptly, damaging the structure of the economy.

Dilip Agarwal, president of Worldlink, complained that the tax levied by the government on telecommunication service providers is excessive.

Aanchal Kunwar, managing director of Daraz Nepal, emphasized the need for a stable policy in the context that online business is growing.

Chairman of Muktinath Agricultural Company, Bharatraj Dhakal said that the agricultural sector cannot develop in Nepal unless there is a market guarantee for agricultural produce, but there is no market law yet.

Earlier, while inaugurating the summit, Prime Minister Pushpa Kamal Dahal claimed that the government is actively working for economic growth. He also claimed that there has been significant improvement in foreign exchange savings and foreign currency reserves in recent times.

Finance Minister Dr Prakash Sharan Mahat said that a flexible monetary policy is necessary to end the problems seen in the economy.

Maha Prasad Adhikari, governor of NRB, said that the central bank cannot carry more load than its capacity. He said, “There is a lot of expectation from NRB as other sectors have not been able to provide any support. Monetary policy has its own limits. Going off the limits can throw the entire banking system off the track.”