Financial market

Finance Minister Pledges to “Correct” Government Financial Market Policy – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATMANDU, DECEMBER 15

Finance Minister Janardan Sharma said the government stands ready to correct any difficulty created by government policies in the financial market.

This statement by the Minister of Finance comes at a time when banks are focusing on collecting deposits instead of investing due to the shortage of liquidity for months.

Speaking today at the Innovation Summit organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in the federal capital, he said: “Come on, say directly whether government policy has created any difficulties in the financial market. We also have a representative in Nepal Rastra Bank (NRB). We are ready to tackle the problem right here.

Through the Innovation Summit, the FNCCI launched the debate on rapid and sustainable economic growth in the post-COVID change scenario. The FNCCI indicated that the recommendations of the Summit would be submitted to the government for their implementation.

Recalling that economic activities were gradually regaining the upper hand, Finance Minister Sharma stressed the need to make the country’s economy robust in the face of the possible impact of the pandemic in this sector. He suggested reviving the economy and bringing it back to a pace, also considering resources and manpower.

The Minister of Finance has placed emphasis on investment by identifying his own needs, capacities and possible competitive areas.

“We cannot be competitive in all sectors. We need to conduct a study in a new way to identify our competitive areas and increase investments in areas where we have a competitive advantage,” said Finance Minister Sharma .

He said the trade deficit problem was still there. Finance Minister Sharma said banks and financial institutions have invested 49% (extended loan of 387 billion) of the annual target in the current four months.

“We have to study whether this expansion of investments is negative or positive. Looking at the statistics, we see that this investment has been more in the industrial sector and that it will ultimately help the economy once it is used,” he said. said the Minister of Finance on an optimistic note. .

Stating that the existing liquidity problem in the country suggested the risk of an interest rate hike, he said letting the market deal with the problem independently or regulating it was the serious question of the moment. “What is the Federation’s position on this issue, we want to be informed of their point of view.”

He took the time to urge banks and financial institutions to the proposal advising a policy capable of strengthening institutions and preventing liquidity risk.

During the conference, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Shekhar Golchha stressed the need for state policy to promote investment and entrepreneurship. Despite some progressive green indicators in the national economy, the terror of COVID-19 continued to prevail and under this pretext, the economic sector needed the support of the government to face possible adversities, according to him.

FNCCI Vice President Chandra Prasad Dhakal said the event will discuss the impact of post-COVID-19 on the economy and issues needing correction. As he said, the Conference will prepare a formal policy document incorporating its findings and deliver it to the government.

He believed that a policy that encouraged investment would lead to internal investment.

Liquidity management, promotion of micro-industries, small businesses and small industries and promotion of exports are among the urgent issues to be discussed in the round tables during the various sessions of the Summit.