Thursday, March 1, 2018

PM Oli claims government poised for double-digit economic growth

Prime Minister KP Sharma Oli has claimed that the government is going to achieve a double-digit economic growth within the first quarter of next fiscal year.
Meeting with representatives of Nepal Chamber of Commerce (NCC) at his official residence in Baluwatar today, the Prime Minister said that his government is going to surpass fiscal year 2016-17's economic growth of 6.9 per cent to hit a double-digit growth rate.
The Chamber has – submitting a proposal – also emphasised on the need of making the next decade as the 'decade of double-digit economic growth'.
NCC president Rajesh Kazi Shrestha, submitting the 18-point proposal to the Prime Minister Oli said that the private sector and the government should joing hands to achieve economic development.
The proposal submitted by the NCC has prescribed pills for the economic ills including development of the agriculture, energy and the tourism sectors. It has also recommended the government to guarantee the rule of law and promotion of industrial development, apart from promotion of foreign investment, efficient revenue administration, support to share market, well-managed transportation, communication and infrastructure development and importation of petroleum products.
Shrestha, on the occasion, also suggested the government to make the public holidays community specific as the country has too many public holidays that has had a negative impact on the economy.
The private sector has also urged the government to amend the age-old acts, regulations and guidelines to suit the current business environment. They also asked the government to resolve the challenges of federalism, foreign trade and the banking sector that is fighting to manage the lonable fund.
On the occasion, finance minister Dr Yubaraj Khatiwada assured that the government would move ahead by taking the private sector into confidence to achieve the economic prosperity. The finance minister also expressed commitment that the government would do the needful to implement all logical suggestions.
Making a commitment that the private sector will join hands with the government to meet the economic growth target, the Chamber also urged the premier to declare the next decade as ‘Decade of double-digit economic growth’.
The Chamber has also suggested the government to adopt various measures to reduce the cost of doing business in the country, provide assurance of rule of law, improve industrial environment and attract investment in various sectors.
Likewise, the Chamber also drew the government’s attention to solve problems of double taxation, prepare an inventory of property lacking sources and create an environment for investing them.
"The provision requiring a Nepali citizen to disclose their source of income has been a hindrance for enough investment," the Chamber president Shrestha said, adding that the provision is the key reason for the failure to create an environment for investment.
The Money Laundering Prevention Act makes it mandatory to disclose the source of income and government investment. Banks are required to report every transaction of over Rs 1 million to the Financial Intelligence Unit (FIU) of the central bank. Hinting that the provision of the Act has been a factor deterring investment, the NCC prodded the government to list property lacking sources.
The Chamber has urged to archive the domestic property lacking source and to create an environment to invest them.
"It requires a huge investment in order to achieve 7.2 per cent growth," the report reads, adding that the provision of legal source has deterred domestic investment. "The environment for domestic investment will improve a lot, if the existing domestic sources could be recorded."