December 2: Finance Minister Janardan Sharma has once again assured that the country’s economy is not in crisis. According to the minister, only those who do not have a good understanding about the economy claim that the financial situation is getting worse.
He insisted that the economic indicators are improving while development activities will gain momentum after the election. This will result in increased capital spending, added Minister Sharma.
“The present situation cannot be termed as crisis,” said Minister Sharma.
The finance minister made such a remark while addressing media persons during the 26th anniversary of the Society of Economic Journalists Nepal (SEJON) on Thursday.
“If anyone thinks the economy is crisis-ridden, it is their weakness in understanding the current situation,” said Sharma, adding, “Having said so, I admit there are some challenges which need to be addressed in collaboration with the private sector.”
The finance minister gave a ‘counter-statement’ at a time when the private sector stakeholders including the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) had been claiming that the economy is on the verge of a disaster.
Issuing a statement on Tuesday, the FNCCI had warned that the economy was heading towards a disaster.
Speaking at the anniversary of SEJON, Finance Minister Sharma said that remittance inflow, foreign exchange reserves, Balance of Payments among other indicators were positive and urged the analysts not to spread panic by saying that the economy was in crisis.
Meanwhile, Finance Minister Sharman said that no one should undermine the private sector of Nepal which contributes 70 percent to the economy. He also pledged to address the demands and resolve the problems of the private sector.
“Our economy is being driven in a traditional way,” said Minister Sharma, adding, “Now, it’s time to add new dimensions to it. We need innovative technologies to drive the economy ahead.”
On the occasion, Nepal Rastra Bank’s Governor Maha Prasad Adhikari also said that the country’s economy is not as bad as it has been rumored to be.
“Nepal’s economy is stable compared to other nations of south Asia except India,” said Governor Adhikari.
“However, it doesn’t mean that there any problems at all,” he added.
According to Governor Adhikari, the private sector has been protesting against the working capital guidelines issued by the central bank although the guidelines were implemented after taking suggestions and feedback from the private sector.
“We had published a notice seeking feedback from the private sector on December 30, 2021,” he said.