FinMin, governor and FNCCI prez not on the same page on economy


KATHMANDU, NOVEMBER 23: In recent days, there has been an increase in unwarranted activities of defaulting on bank loans in the name of economic recession.  The very anomaly provides ample to suspect whether the country is turning into a “failed state”.  In this context, Prime Minister Pushpa Kamal Dahal discussed ways to overcome the key challenges facing the economy on the last Monday and Tuesday. Both days saw intense related discussions amongst the PM,  ministers, bureaucrats, central bank governors, private sector representatives, etc.

With this, it was expected that at least the heads of finance, monetary, and private sectors would be on the same page to resolve the current economic turmoil. Nevertheless, such expectations have now been shattered. It is because Finance Minister Dr. Prakas Sharan Mahat, Governor Maha Prasad Adhikari and Fncci president Chandi Prasad Dhakal seem to be engaged in blowing their own trumpet. Dr. Mahat is claiming that the economy is gradually getting back on track, while Adhikari makes an argument to defend the monetary policy. On the other side, Dhakal has been stating that the economic scenario is going downhill alarmingly.

Speaking at a program yesterday in Bhaktapur, the Finance Minister claimed, “The previous government had pushed the economy on the verge of collapse. But  now the economic situation is improving with the efforts of the current government.”

Similarly, Governor Adhikari, in his meeting with the representatives of the Banks and Financial Institutions (BFIs) on the same day directed them to be strict towards collecting the principal and interest of the credits floated by them.    The very direction sharply contradicts with the decision of the Finance Ministry to facilitate those businesspersons/ industrialists facing difficulties to repay loans through the Nepal Rastra Bank.

Likewise, while addressing a program held today in the capital Chandra Prasad Dhakal, president of Fncci, stated,” The statistics presented by the central bank and the FNNCI ministry show that the economic indicators are going up.  But the reality is quite the opposite.”