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Finance Minister Dr. Mahat pledges new plans to revitalize economy

Metakhabar by Metakhabar
March 31, 2023
in Business, Featured-news, News
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Finance Minister Dr. Mahat pledges new plans to revitalize economy
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Kathmandu: Newly appointed Finance Minister Dr Prakash Sharan Mahat said the first aid was to boost up low confidence prevailing in the economy by placing short-term, mid-term, and long-term plans.

Taking charge of the ministry today, Finance Minister Dr Mahat said the first and foremost priority of the government was to bring up confidence in all sectors.

“We have to work in a way to boost confidence and transform existing despair into hope. A coordinated role of monetary policy and fiscal policy is a must to this effect. Cooperation from all agencies, including the central bank and employees, is imperative. Let us engage our efforts with the can-do notion to avert the crisis”, he noted.

Dr Mahat expressed his confidence that the economy would gradually see positive indications if self-confidence in all sectors was enabled.

Noting that the national economy has faced several challenges including low revenue collection, high public spending, declining investment, worsening external sector, short of liquidity in banks and financial institutions, and high-interest rates, he argued there should be coordinated roles of the central bank and Ministry of Finance for resolving such problems.

“Climate of investment has been worsening in the country and cost of production has also gone up”, he said, highlighting the need for reforms on this front as well.

He also stressed the need to adopt austerity measures and also prioritize plans and programs taking into consideration the rate of returns. However, he noted the urgency of increasing capital spending.

Revenue management has been a big challenge at present, Dr Mahat said, underlining the need for stringent measures to improve its capacity. He also highlighted the need of adequate consultation and coordination with bilateral and multi-lateral development partners to address an imbalance in the external sector of the national economy.

Issuing directives to the ministry employees after assuming the office, Dr Mahat urged all to perform with positive energy for results.

“I alone cannot do anything to improve the economy. The roles of all stakeholders are equally crucial. We would engage our all-out efforts but need support from all quarters”, the newly appointed finance minister said.

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