News Commentary: Boost private sector's morale to prop up national economy

Kathmandu, Nov 13: Two months have passed since the September 8-9 Gen Z protest that rocked Nepal, toppling the KP Oli-led government and causing the dissolution of the House of Representatives (HoR). Loss of over 72 lives, among which 45 are declared martyrs, and damage of private and public property over a short span of time stupefied all sides.

Political parties and observes are still making analyses from various angles on cause and consequences of the horrible attacks on legislature, executive and judiciary, while the interim government mandated to hold HoR election coming March 5 is intensifying preparation for it. Engagement with major stakeholders for election- the political parties- is gradually gaining a pace.

Equally stung by the scourge of September 9 was the private sector, which is scrambling to rise from the ashes. The industrialists and entrepreneurs who suffered worst in the arson and vandalism are in need of morale boost to which government requires paying adequate attention.

The arson in the business complexes and hotels- Hilton and Bhatbhateni Supermarket, among others not only caused job loss but also perished huge investment in no time. The owner of the Bhatbhateni Supermarket, Min Bahadur Gurung, wept bitterly in a television talk over the loss he was inflicted in the business. Like Gurung's, several businesspersons' property worth billions of rupees perished before eyes within a day or two that spread a shock wave to the investors, industrialists and entrepreneurs and forced them to consider whether they continue investment within country. Still, the businesspersons- big and small- are pressing for adequate security to their investment and firms. They want to be confident that their business would remain safe in future.

Political brunt on economy

Although the political vacuum was patched up quickly by the President, installing the new government and giving it a major mandate of new election to HoR, the economic suffering Nepal witnessed is not less alarming. Reviving industries by pouring in additional sources requires relaxed policies from the State side along cooperation. Most importantly, how long it will take to boost the morale downed by the appalling attacks, counts much.

At a time when the world is advancing even beyond the fourth industrial revolution, the recurring economic shocks in Nepal are worrying concerns. This time, the economic shock is different, as it is coupled with political shock. So, it can be observed from political lens as well.

Exodus of youths, brain drain, lack of employment opportunities, remittance-fed economy, utter negligence to agriculture, and good governance in short supply are some of the issues that have long plagued the national economy in Nepal. There is no denying that political leaderships with frequent changes in government- even in the new political system of federal governance- lost farsightedness and missed the incorporation of youth aspirations are largely behind the economic mess that is now coupled with the political tragedy this time.

To everyone's dismay, the political parties' sheer indifference to forward economic revolution irrespective of chanting 'struggle, revolution and movement' in each speech is worth mentioning. The names whether linked to socialism, communism or democracy, did not yield to the extent the people, especially the youths, aspired for that contributes to national economy.

Worrying concern

The infrastructures built as the national pride projects like the Gautam Buddha International Airport and the Pokhara International Airport are left without full operation. The local businesspersons in Bhairahawa often blame the political leadership for their failure to utilize such mega infrastructures in full scale. A case in point, even for emergency landing of the planes when the Tribhuvan International Airport gets hitches, the international flights are flown to the airports in neighbouring countries. Skipping the international flights has riled the business persons in Bhairahawa. It happened recently.

Similarly, a recent study report released by the central bank, Nepal Rastra Bank, showed that even the Bagmati Province, housing the federal capital, Kathmandu, lacks reliable roadway. It has direct impact on the transportation. The report has also described climate change-induced disasters denting the economy in province. The disasters caused damages in several infrastructures. For the economy to sustain, smooth functioning of such vital infrastructure is imperative.

Moreover, the economic shocks undoubtedly have adverse impacts in our annual growth rate, periodic plan, climate ambition, sustainable development goals, LDC graduations and foreign investment.

Retrenchment for austerity

With this in the background, the present government, despite having the major mandate of holding free and fair election to HoR coming March 5, is in need of addressing the concerns surrounding national economy where the demands of industrialists and youths bear much relevance and significance. One of the positive aspects of the interim government is that it has got a learned and experienced person, Rameshwor Khanal, handling the Finance Ministry. From the very beginning, Minister Khanal launched the austerity measures and shared how the budget for the election could be managed. The extravagance- splurge of allowance, unnecessary recruitment in many public offices under political influence, underperforming contractors, among others- have got slap. Even the bureaucracy bloated with allowance has decided retrenchment following the suit.

Filing court cases against the corrupt persons and leaders has also signaled a step towards good governance, which is also one of the major demands of the Gen Z protest. Undoubtedly, good governance is a prerequisite to economic progress. Once the political protection to cabals is ruptured, it evidently discourages unfair business.

Cooperation among engineer, engine and 'indhan'

The government has been further prodded to create atmosphere conducive to business and investment. The businesspersons have courted the line ministers, seeking supports to revive industries and raise the perished structures. In this connection, Prime Minister Sushila Karki finely explained the industrialists, entrepreneurs and workers as the indhan (fuel) to national economy. "I believe private sector industries are foundation of economic prosperity," PM Karki reminded.

In her special address to the private sector at a recent "National Economic Dialogue 2.0", PM Karki praised the role of private sector for the economic prosperity. She pointed out the urgency of collaboration and cooperation among the 'engineer, engine and indhan (fuel)' for the country. According to her, all Nepalis are engineers; while society, government and system are the engines; and industrialists, entrepreneurs and workers the indhan (fuel).

Once the government, with its short stint- now only four months to go as per mandate- put in practice what PM Karki underlined at the programme to boost industrialists' morale, it will certainly help to pave way for propping up the economy. Government's strength lies in the front of economic delivery as well.