Economy may grow by five per cent: Governor Khatiwada

Briefing the newly appointed finance minister Bharat Mohan Adhikari the central bank governor Dr Yuvraj Khatiwada said that the economy will grow by 4.5 per cent to five per cent.
"Propelled by the good agriculture production -- especially paddy -- the economy is expected to grow by 4.5 to 5 per cent," he said, adding that the inflation, however, could not be tamed due to imported inflation from India and expected-hike in the petroleum products.
Similarly, the country is also bearing the burnt of the load-shedding. "The regular power outage has also raised the production cost that has ultimately fuelled the price hike," Khatiwada added.
He briefed that the mobilisation of foreign grant and reimbursement from the donors will help ease Balance of Payment (BoP) deficit. By the fifth month of the current fiscal year, the BoP deficit stands at Rs 3.35 billion.
However, he also informed that the government has Rs 25 billion in its tresuary. "The government's inability to spend, coupled with deposits flow to coopetaives has led to tight liquidity in the commercial banks," he briefed the minister. The money has not come to banking channel due to low-confiodence of the people on banks and financial institutions and anti-money laundering act that is an international obligation, though no one should fear of the regulation. "The 'informal economy' has also sqeezed the liquidity situation," he added.
Finance secretary Rameshwor Prasad Khanal, welcoming the minister, said that the ministry is working on maintaining the financial displine.
Similarly, revenue secretary Krishnahari Baskota briefed Adhikari of the encouraging revenue mobilisation. "By the end of seventh month (mid-February), the revenue mobilisation has touched Rs 108.50 billion," he said.
"Though there are challenges to the economy, its government's duty to uplift the living standard of the people," Adhikari said, adding that the people should feel the change.