 |
|
| Kathmandu, Saturday January 18, 2003 Magh 04, 2059. |
|
Minister Pradhan calls for
industrial revolution
Post Report
KATHMANDU, Jan 17 : Minister for Industry,
Commerce and Supplies Mahesh Lal Pradhan today said that there is a need for industrial
revolution in the country to effectively utilize the capital that is lying idle as a
result of slackening domestic economy.
"Only high production and productivity can
lead to increased per capita income and high growth in Gross Domestic Product (GDP). To
ensure high production, an industrial movement is needed," minister Pradhan said.
He also noted that the country is not facing any
dearth of capital for investment, but is rather facing a crisis in avenues for investment.
"There is huge capital in the country that has remained largely unused due to the
economy’s poor performance," he said.
Minister Pradhan said this while addressing the
formal inauguration of Patan Finance Company Ltd. The company, which came into operation
over six months back, was formally inaugurated today.
Pradhan further said that lack of investment
opportunities is well reflected by the dismal Gross Domestic Product (GDP) growth figures.
He laid emphasis on the need to create employment opportunities for promoting
income-generating activities.
For the purpose, Pradhan said, the first step
would be is to clean up the messy privatization process. "Privatization of
state-owned enterprises should be done properly to ensure better employment
opportunities," he said.
Rajan Singh Bhandari, Executive Director of
Nepal Rastra Bank, said that non-economic factors are the main reasons for the current
downturn in the domestic economy.
He expressed concern over the sharp increment in
non-performing assets (NPAs) of financial institutions lately. "The increase in the
NPAs of financial institutions is largely due to the present economic slump," he
said.
Bhandari further said that in the context of an
increment in the NPAs of financial institutions, there is a dire need for such
institutions to adopt cost reduction measures. "Only through cost reduction can the
health of financial institutions be maintained," he said.
Moti Lal Shilpakar, Chairman of the finance
company, speaking on the occasion said that it is difficult for finance companies to
survive under the present adversities. Though conceding that the directives issued by the
central bank to ensure good health of finance companies is necessary, he said that certain
provisions need reconsideration to boost financial activities and ensure sustenance of
finance companies.
Likewise, Ram Shanta Shrestha, General Secretary
of Finance Companies Association, lambasted the central bank for issuing directives that
seek to control the activities of finance companies.
"All directives issued by Nepal Rastra Bank
should be reform-oriented rather than being only regulatory. Also, the directives need to
be compatible to the current state of affairs in the domestic economy," he said
adding, "The present thrust should be on how the economic state can be revived."
Patan Finance Company Ltd. has an authorized
capital of Rs 60 million, out of which Rs 30 million has been issued. The paid up capital
stands at Rs 18 million. The company plans to increase the issued capital to Rs 60 million
and paid up capital to Rs 30 million in the near future.
As of today there are 54 finance companies in
the country, which have mobilized deposits of around Rs 14 billion. Likewise, the
cumulative investment by finance companies stands at around Rs 12 billion.
Other Stories
|
