Growth rate to be 8% next fiscal year
By A Staff Reporter
Kathmandu, May 22: Vice-Chairman of the National Planning Commission (NPC) Prof. Dr. Pushpa Raj Kandel said on Tuesday that the government was treating the private sector as its trusted partner in development and economic growth.
“The country would achieve the growth rate higher than 8 per cent in the next fiscal year 2019/20. We have expected more than 55 per cent investment contribution from the private sector over the period of the 15th Periodic Plan,” he said while addressing the pre-budget discussion on ‘Investment realisation through budgetary reforms’ organised by the Nepal Economic Association (NEA).
He said that the government wanted cooperation from and collaboration with the private sector and included its representatives in the institutions like the National Development Council and the Investment Board of Nepal. Likewise, a Business Advisory Council was established as a mechanism to have dialogues with the private sector.
Dr. Kandel said that Nepal needed the Foreign Direct Investment (FDI) to propel economic growth and assured that the investors would get high rate of returns from the investments they made here.
He also said that the investment from the Non-Resident Nepalis would get priority treatment.
Secretary at the National Natural Resources and Fiscal Commission Dr. Baikuntha Aryal said that the private sector supplements the government investment while the resource gaps were met by the FDI.
“Nepal has poor investment realisation of both the public and private investment. While the average of the FDI realisation is about 30 per cent of the approved amount, the government financing has been mobilised just 35 per cent,” he said.
According to the Financial Comptroller General Office, only 34.92 per cent financing and 41.99 per cent capital budget has been utilised by Monday.
Dr. Aryal said that the States could also sign investment deals with the investors with the approval from the federal government.
“Nepal continues to have poor realisation of the Foreign Direct Investment (FDI) with about 30 per