Economic Reforms Commission submits report to government

KATHMANDU, APRIL 11: The High-level Economic Reforms Recommendation Commission has submitted its report to the government, outlining key measures to foster an investment-friendly environment and reduce manufacturing costs.

Presenting the report to Finance Minister Bishnu Prasad Poudel today, Commission Chair and former Finance Secretary Rameswar Prasad Khanal said that consumption and investment appear to have declined due to sluggish credit growth, a slowdown in real estate transactions, large-scale savings trapped in the cooperative sector, delays in certain government payments, difficulties in recovering commercial loans, and a deepening crisis in the construction sector.

Speaking to RSS, Khanal said the commission concluded that immediate policy intervention is necessary to boost demand. To achieve targeted economic growth, he emphasized the need for structural reforms on the supply side, including reducing production costs to enhance competitiveness.

Receiving the report, Finance Minister Poudel said he believes the recommendations will help address challenges in the national economy. He also expressed commitment to implementing the suggestions.

“We are currently preparing the budget for the upcoming fiscal year. The report highlights pressing economic issues and offers potential solutions. We will study it thoroughly and implement the suggestions in phases,” he said.

The government had formed the commission under Khanal’s leadership to propose strategies for revitalizing the national economy. Other members of the commission include National Planning Commission member Prakash Kumar Shrestha, Tribhuvan University Economics Department Head Ram Prasad Gyawali, economist Biswas Gauchan, and Policy Research Institute senior researcher Kalpana Khanal.