Government Takes Measures to Facilitate Loan Repayment and Boost Economy

The Nepalese government has announced a series of measures aimed at rejuvenating the country’s economy, following extensive discussions with various stakeholders, including representatives from the private sector. The decisions, announced after a meeting led by Prime Minister Pushpa Kamal Dahal ‘Prachanda,’ include initiatives to ease the repayment of loans for businesses struggling to meet interest payments on time.

In response to the economic challenges faced by businesses, the government has opted to facilitate loan repayment for those unable to meet their interest obligations promptly. Additionally, a comprehensive review of bank interest rates is on the agenda, signaling a commitment to create a conducive environment for businesses to recover and thrive.

A significant move involves the establishment of a specialized mechanism dedicated to regulating financial cooperatives. The government will set up a cooperatives fund designed to safeguard the savings of depositors in these financial institutions. This decision reflects a proactive approach to ensuring financial stability and protecting the interests of depositors.

The Office of the Prime Minister and the Council of Ministers revealed that the government aims to enhance the revenue structure based on recommendations from a commission tasked with tax system reform. This strategic move is expected to contribute to the overall economic development of the nation.

Furthermore, the government has expressed a strong commitment to prioritize the implementation of key infrastructure projects, including the Budhigandaki Hydropower Project, Nijgadh International Airport, Karnali-Chisapani, Upper Arun, and three distinct cricket stadiums. To expedite project progress, outstanding payments owed to contractors will be released promptly.

Prime Minister Pushpa Kamal Dahal emphasized the need to increase capital expenditure and instructed ministers and secretaries to take substantial actions towards this goal. A high-level commission focusing on government reform and promoting good governance will be established, and the Industry and Commerce Promotion Dialogue Council, chaired by the Prime Minister, will conduct regular dialogues between the government and the private sector to foster collaboration and address concerns.

Finance Minister Dr. Prakasharan Mahat clarified that it would be unfair to assert that loans would not be repaid. He highlighted the possibility of implementing measures through the Nepal Rastra Bank to streamline and facilitate the loan repayment process, ensuring a more supportive financial landscape for businesses.