न्यूज अभियान
हरेक खबर विशेष खबर

Kathmandu, Nov 3: National Planning Commission (NPC) Vice Chairman Dr Gunakar Bhatta has stressed on the need of making the public and the private sector investment  complementary rather than competitive in order to rendering the country's development balanced, inclusive and decentralized. 

Addressing at a programme organized here today by the Society of Economic Journalists-Nepal (SEJON), he emphasized the need to increase the effectiveness and returns of public investment.

The NPC Vice Chair said that the government should create an investment-friendly environment by providing infrastructure and other necessary facilities in areas where the private sector has not been attracted.

He pointed out the need to decentralize Nepal's development and ensure that the benefits of development reach the backward regions and provinces. When making public investments, the NPC Vice Chair said, it is necessary to evaluate economic returns, social benefits, and environmental risks together. 

He pointed out that we should not ignore environmental risks in selecting and implementing development projects, drawing attention to the fact that building multiple hydropower projects on the same river can increase damage during natural disasters.

On that occasion, former Chief Secretary of the Government of Nepal, Baikuntha Aryal, gave a presentation on 'Strengthening Public Investment in Nepal: Priorities and Strategies.' He emphasized that Nepal's public investment should be productive, result-oriented, and based on priorities.

He emphasized that instead of the government investing in all sectors itself, the focus should be on building basic infrastructure, developing human capital, and promoting private sector investment.

Aryal noted that agriculture, tourism, energy, information technology, and small and medium industries are potential areas for investment. He pointed out that in agriculture, it is necessary to move from subsistence farming to commercial production, use technology, and develop storage and supply systems. Similarly, he said that branding, packaging, and strategies to attract high-spending tourists are needed in the tourism sector. 

Former Secretary Aryal expressed the view that public corporations' investment and management should also be reviewed.

Presenting the fact that out of 45 public corporations in Nepal, 16 are in deficit, he suggested that these entities should be classified based on their strategic importance and performance. He suggested that public corporations in a weak economic state should be managed through a suitable option such as management contracts, privatization, or closure.

Similarly, he emphasized that when the government provides grants and subsidies in productive sectors, it should adopt a production-based system and should not distribute investments and grants in a way that adds more responsibilities to the government and public entities in the future.

He suggested that to make public investment effective, the government's role needs improvement in three areas. "First, the government should adopt the concept of an effective government with minimal interference; second, it should set regional and project priorities; and third, make broad reforms in the governance system," he said.

During the group discussion held on that occasion, former General Manager of Nepal Drug Limited, Kailash Kumar Paneru, emphasized that in order to strengthen public institutions, it is necessary to provide autonomy while facilitating the required support. "It is necessary to strengthen public institutions; for this, autonomy and accountability are important, and government bodies should facilitate it," he said.

Industrialist Shashikanta Agrawal said that when the government established the public corporations at that time, it started with foreign grants. 

“At that time, it was not easy for the private sector to come in, but now it is easier. We can make it easier in areas where we encourage the private sector and, where needed, collaborate with international companies in public corporations,” he said.

Similarly, Arpita Nepal, co-founder of Samriddhi Foundation, emphasized that the government needs to be clear about the framework for investing in industries.

"The priority of the government should be clear, whether it is running industries or ensuring supply. Based on that, investments can be made in essential areas; it may not be necessary to invest in all industries," she said.