Kathmandu, May 19
The KP Oli government has prepared Nepal’s 14th three-year plan, reducing the contribution of the private sector to the national economy. Prime Minister-led Development Council has already approved the plan that aims to increase government intervention in the economy.
Implementation of the 14th three-year plan is starting from the coming fiscal 2073-74. It aims to reduce the private sector’s contribution to 59 per cent, while the 13th three-year plan had aimed to increase the private sector’s contribution to 70 per cent.
This move has not gone well with Pashupati Murarka, president of the Federation of Nepali Chambers of Commerce and Industry.
Murarka said: The national economy is up and running because of the contribution of the private sector. The government is trying to reduce the private sector’s contribution by increasing its role.
During the plan period, the government expects the private sector to invest Rs 14 trillion. Whereas Murarka says the private sector will invest Rs 15 trillion in two years if the government creates a conducive environment for investment.
In the first year of the plan period, the government aims to achieve six per cent economic growth, while in the last year, it eyes seven per cent growth. However, Murarka says the government cannot achieve seven per cent growth by undermining the private sector.
He says: We invest three-folds more the government does. The government has not been able to increase capital expenditure nor is it creating the bases for the same.
So, how can the government increase private investment and achieve satisfactory level of economic growth?
For this, says Murarka, the government should ensure political stability and introduce laws that are of international standards.
Leaders have pledged to improve the investment climate, but nothing has happened on the ground, he says, adding: Bringing in huge (foreign) investment is impossible without changing our old rules and laws and making them of international standards. Without attracting investment, how can the national economy grow at seven per cent?
The government is preparing to declare the coming fiscal (2073-74) as the ‘kickstart’ year of economic prosperity. It is also planning to declare the next 10 years as the decade of economic prosperity. It aims to achieve double-digit growth throughout the period.
Minister for Finance Bishnu Poudel has been saying that the government’s focus is on achieving economic prosperity. But the government has not taken steps for amending laws behind economic stagnation.
