Kathmandu. Former Finance Minister Rameshwor Khanal has asserted that a 14.87 per cent economic growth rate is needed to increase the per capita income of Nepal to USD 3,000. Addressing a pre-budget discussion programme organized by Society of Economic Journalists Nepal (SEJON) here today, Minister Khatiwada said that it was challenging to achieve the target given the current economic growth rate.

He rated some of the initial steps taken by the present government as positive signs. He said that the decisions such as returning the government vehicles would give a message of good governance and accountability in the long run, even if they seem small.

Khanal said although the government’s commitment to work together with the private sector was welcome, it should be made more effective in practice. He said that the announcement to keep the tax policy stable for the next 10 years will be important to create an investment-friendly environment.

According to him, it would not be necessary to bring an exorbitantly large budget but to prioritize an implementable, realistic and result-oriented budget. Stating that the government’s commitment to create 15 lakh jobs is not clear, he pointed out the need to clarify whether to create new jobs or manage the existing ones.

He stressed the need to develop a new trust-based collaboration model between the government and the private sector by ending the atmosphere of pressure and fear seen in the private sector of late. He also stressed the need of expanding investment in big infrastructure projects through public-private partnership (PPP).

Underlining the need of implementing the recommendations of the High Level Reform Commission for the improvement of economy, he suggested that the government should focus on repealing unnecessary acts, reforming revenue system and strengthening the public financial management.

Speaking about the potential of energy sector, he said that Nepal could be developed as a clean energy exporter within next 10 years. For this, he pointed out the need to expand high voltage transmission lines and strengthen the export infrastructure.

Expressing concern over the current economic situation, he said that although there is more liquidity in the market, the demand for loans has not increased, which is not a positive sign for the economy. In such a situation, investment flow should be increased through appropriate financial instruments, he suggested.