April 8: The economic crisis of the country is deepening but the officials at the Ministry of Finance are not ready to admit it. Government authorities argue that although the economy is under pressure, the situation is not as grim as it has been portrayed.
Joint Secretary at the Ministry of Finance Dundi Prasad Niraula says that they are constantly working to improve the economy.
According to him, Nepal’s situation cannot be compared with that of Sri Lanka. Unlike Sri Lanka, Niraula argues that Nepal’s economy is under stress and the ministry is confident that the crisis will end if they take precautionary measures.
The inflow of remittance worth Rs 91 billion in the month of Falgun (mid-February to mid-March) is a positive indicator, according to the Ministry of Finance. Government officials claim that the foreign exchange reserves can sustain imports for up to six and a half months.
“However, the foreign exchange reserves are declining and the government must be cautious and take measures accordingly,” said Niraula.
He further said that the Ministry of Finance is coordinating with the Nepal Rastra Bank (NRB), the Ministry of Industry, Commerce and Supplies and the Ministry of Agriculture and Livestock Development to bring the situation under control.
“We have asked every unit to prepare an action plan. We will face the situation on the basis of the action plans,” said Niraula.
Dr Shalikram Pokharel, advisor to the finance minister, said that they are holding discussions with all stakeholders including the NRB to collect suggestions in order to keep the situation under control. He added that the suggestions will be effectively implemented.
“The suggestions will be implemented in a phase-wise manner to bail out the economy from the current crisis,” said Pokharel.