- Prem Wali
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In recent years, the government’s incompetence and apathy have pushed the country towards a serious economic crisis. Despite having a two-thirds majority, there was no concrete economic activity in 15 months. Businesses closed, shops closed, people angry but the government silent. Money piled up in the bank. But the public could not use it. The market could not function due to lack of money. Employment plummeted and the country’s overall economy slowed.
Misinterpreting court decisions, silencing critics, and inflating pressure rather than managing public discontent made matters worse. As a result, the country is going through a huge economic loss today. However, this is not only a challenge but also an opportunity for the current interim government. Contrary to the failures and inexperience of the previous government, this government can make a difference by taking practical, rational and investment-friendly decisions.
Investors and Restoring Confidence
Uncertainty is prevailing among investors in the country right now. The government must first convince the private sector, investors and the general public that elections will be held on time, peace and security will be maintained, and economic reforms will be a priority. This can prevent capital outflow and increase investment in the short term.
Stock Market: The Means of Moving the Economy
The stock market is a key indicator of a country’s economy. Even if the previous governments ignored it, the present government should make it a priority.
- If the stock market is moving, the investors spend the money they earn on consumption. Clothes, food, travel, etc. also make other areas vibrant.
TAG_OPEN_li_60 From small investors to billionaires, everyone participates. This reinforces the practice of giving equal opportunities to all in a democracy.
This is also the means of attracting foreign direct and indirect investment.TAG_OPEN_li_59
Immediate Tasks
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- Increase the limit of share loan: to transfer money deposited in the bank to the stock market.
- Encouraging Institutional Investment: Giving banks and financial institutions the right to reinvest.
- Activating the Market Maker: Implement a policy of buying when the market is down, selling when it rises.
- To facilitate NRN investment: To give Nepali Diaspora the right to invest in all sectors including the stock market.
- Easing the Personal Loan Limit: Creating a loan environment according to the capacity of .
- NRB Process Simplification: to provide easy and quick access to investors.
Conclusion
If the stock market can be made active, it will send an immediate positive message to the economy. It gives hope to the general public, instills confidence in the investors and attracts the attention of foreign investors to Nepal.
This area, which was neglected by the previous government, should now be in the government’s priority. Just like the practice of giving equal opportunities to all in a democracy, the stock market also gives equal opportunities to everyone, big and small. The economic renaissance of the country is possible through this path.
(The writer has been active in the stock market for a long time.) )
