Lalitpur: President of the Nepali Congress (NC) and former Prime Minister Sher Bahadur Deuba has called on the government to proactively support entrepreneurs and investors to stimulate economic growth and strengthen the national economy.

Speaking at a program organized by the NC’s Department of Financial Institution Coordination at the party’s central office in Sanepa on Tuesday, Deuba underscored the importance of creating a conducive environment for business and private sector growth. He highlighted that one of the key goals of the recent seven-point agreement between the NC and the Communist Party of Nepal (UML) is to bolster the national economy through collaborative governance.

Deuba recalled the privatization and liberalization policies introduced by the NC-led government in 2048 BS, which, despite initial criticism, laid the foundation for Nepal’s open-market economy. “Industries are to be operated by industrialists, and businesses by businesspersons — not the government,” he said. “The government’s responsibility is to facilitate and support, not to run businesses.”

Economic Indicators Show Progress
The NC President noted that despite the setbacks caused by the Maoist insurgency, the 2015 earthquake, the COVID-19 pandemic, and global conflicts such as the Russia-Ukraine war, Nepal’s economy has shown resilience. He cited improvements in external economic indicators, including:

• A surplus in the current account and balance of payments
• Growing foreign exchange reserves
• Inflation maintained at around 4%
• A 4.6% increase in private sector credit flow
• A 13.1% rise in imports
• A remarkable 77.8% growth in exports compared to the previous fiscal year

Call for Real-Sector Reforms
Despite these gains, Deuba emphasized the need to focus on the real sector of the economy. “We must now prioritize increased production, job creation, business activity, and investment promotion,” he said, stressing the need to rebuild public and investor confidence.

He also expressed concern over the underutilization of the development budget, urging the government to undertake urgent reforms in laws, procedures, and institutional frameworks to ensure timely and effective capital expenditure.

Monetary Policy and Credit Flow
Deuba welcomed the recent reduction in interest rates following the release of the Monetary Policy, saying it would help increase credit availability for businesses. “The liquidity in banks and financial institutions must be transformed into productive investment,” he said, expressing optimism that this would encourage both new entrepreneurs and support existing enterprises.

Concerns Over Remittance Dependency
He cautioned that Nepal’s over-reliance on remittances has negatively impacted agriculture and industry. Deuba called for policy reforms to channel remittances into productive sectors, enabling job creation and economic diversification within the country.

Cooperatives and Consumer Protection
Highlighting the establishment of the Cooperatives Authority under the current coalition government, Deuba said the move aims to make the sector more systematic, transparent, and credible. He also urged the government to adopt effective policies to protect depositors who have been victims of fraud in the cooperative sector.

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