Import should be tightened: Economists

Kathmandu / July 2: Economists have suggested the tightening of the imports to reduce the balance of payment (BoP) deficit. The economists have shown concern over the economic condition during an interaction program organized by the Center for Professional Journalism Studies on the “current economic situation of Nepal”.

The economists emphasized tightening the imports except for necessary items and services.

Speaking in the program, vice-Chairman of the National Planning Commission Bishwa Paudel said that there is no such severe situation in the economy.

He claimed that though the foreign currency is depleting economic condition of Nepal won’t be like that of Sri Lanka. He emphasized increasing exports.

He said that the country became self-reliant on cement and now is in the position of export. Production of electricity can be enhanced by promoting foreign investment. Imports could be reduced by increasing the production of agriculture as it is prioritized in the budget.

Former governor of Nepal Rastra Bank and former vice-Chairman of National Planning Commission Deependra Bahadur Kshetry said that depletion in foreign exchange reserves due to the relentless rising in imports could further worsen the economy.

He emphasized the tightening of the imports except for necessary items.

He warned that rising imports without amplifying the sources of foreign currency is a matter of concern. He said that there is inconsistency in government policy. There is a lack of human resources due to the heavy exodus of foreign employment.

Economic advisor of the ministry of finance Dr Surendra Upreti said that the government took the policy to discourage imports soon after the foreign currency reserve started to decline.

Upreti informed that the government is moving for increasing agriculture production, export promotion and export of electricity.

Chairman of Confederation of Banks and Financial Institutions Nepal, Pawan Golyan there is a shortage of liquidity in the financial institutions. He said that shortage in liquidity hampering credit extension in the banking sector.