Government plans to propel economic growth

The economic advisory council of the Prime Minister today discussed on how to propel economic growth despite current constraints like power shortage and poor infrastructure.
The council discussed on some of the sectors that could help economy grow, if they are incentivised, according to the Prime Minister's economic advisor and former finance secretary Rameshwor Prasad Khanal.
They discussed on how to promote domestic private airlines — as the national flag carrier has been on death bed since long and could not be revived immediately — to fly on international routes, hotels and agriculture sector. "These sectors do not need extra infrastructure or power — the current bottlenecks — and could contribute significantly to the economic growth," he said, adding that the government's favourable policy will help not only help these sectors growth but also will help economy.
The international airlines that fly to Kathmandu take away around Rs 75 billion every year. If the domestic airlines could be promoted to fly on international routes, they would help country save some Rs 75 billion. Nepal Airlines Corporation (NAC) with its two age-old aircrafts has not even been able to fly on the routes the country has permission. Most of the time, one of its aircrafts is grounded, forcing the NAC to reduce its international flights to less than half destinations.
Likewise, the government could provide some incentives to the hotels as the country has seen an encouraging and sustainable growth of international visitors during the Nepal Tourism Year 2011.
Similarly, commercialisation of agriculture will also create employment but the farmers are having difficulties on access to credit. "The government might help farmers insure their crops, which will encourage the banks and financial institutions to lend," the former bureaucrat added.
Boost in the agriculture will contribute to the economic growth hugely as agriculture contributes one third to the total Gross Domestic Production (GDP).