By Dipesh Ghimire
Immediate Actions to Revitalize the Economy
Immediate Actions to Revitalize the Economy:
Immediate Financial Disbursements:
Disburse approximately NPR 74 billion pending payments for the construction sector and around NPR 3 billion for dairy and sugarcane farmers without delay.
Release approximately NPR 3.5 billion in export subsidies that have been stalled for two years to boost exports, which have been declining.
Settle around NPR 16 billion in overdue interest subsidies for concessional agricultural loans to make this loan system effective.
Address the issues faced by cooperative members and rejuvenate cooperative activities by establishing a separate regulatory body for financial cooperatives.
Remove all barriers related to legal complexities, cumbersome investment procedures, taxation, infrastructure, and implementation to create an attractive investment environment.
Cost Reduction and Import Control-Substitution:
Expenditure Reduction and Import Management:
Cut Cabinet meeting allowances, travel allowances, and other perks by 50%, and reduce salaries by 33% for one year.
Slash expenses in the Prime Minister’s and ministers' secretariats by 50%, and reduce fuel expenses by one-third.
Direct provincial and local governments to make similar expenditure cuts.
Limit all foreign visits except those deemed essential, and reduce meeting allowances by 50% and fuel expenses by one-third across ministries, departments, and government institutions.
Control current expenditure related to imports and temporarily freeze low-priority new capital projects.
Prohibit parties organized by the government and its institutions except for essential events.
Discourage the import of luxury and semi-luxury items.
Ban the import of luxury cars priced over NPR 10 million.
Promote the use of electric vehicles priced under NPR 5 million and encourage the use of electric kitchen appliances (stoves) as an import substitution measure.
Encourage the use of domestic products and mandate their use in hotels.
Lead by example in reducing extravagant expenses and motivate citizens to save and invest more.
Additional Measures to Revitalize the Economy and Reduce Expenditure:
Further Reforms:
Ensure quick, efficient, transparent, and reliable government services to convey a message of reform to the public.
Implement a policy for tourists (excluding those from India) to spend a minimum of USD 100 daily by waiving visa fees, as Nepal has not been able to increase the average stay of tourists (currently 12-13 days) and average daily expenditure (USD 50).
Recognize the potential of IT exports (which reached NPR 100 billion last year) and offer special incentives along with establishing export promotion zones (EPZ) with facilities similar to those in Bangladesh (100 EPZs).
Strengthen revenue and border administration to enhance revenue collection.
Formulate policies and programs to channel increasing foreign exchange reserves into development initiatives.
@ Dr Rewat Bahadur Karki : nayapatrikadaily
