Economists warn of economic gloom

Economic experts have warned that lengthening political instability could affect country´s economic development in the coming years.
Highlighting the unwillingness of political parties toward resolving the current political stalemate, Prof Dr Bishwambher Pyakuryal said that the country would enter into more uncomfortable situation in the future. “The political parties are failing to address the current political as well economic problems," Pyakuryal said.
"Most of the macroeconomic indicators are performing negatively and the monetary policy of the country has become non-functional to an extent." He also said the country was facing double-digit inflation pressure.
Addressing an interaction on “Diagnosing Nepal´s Macroeconomic Constraints” here on Friday, Pyakuryal urged political parties to be more sincere toward country´s situation.
Another economist Keshav Acharya said that country´s economy was alarming. “The monetary policy should be made stronger to address inflation," Acharya said. "The fiscal policy also has some problems. We have to synchronize the fiscal and monetary policies in order to exit the current situation."
The country´s economic indicators are performing poorly, as per the latest review report of the Nepal Rastra Bank. The mid-term budget review has brought down growth forecast for the current fiscal year to 4.1 percent from earlier forecast of 5.3 percent.
During the interactions, the economists discussed on problems such as low capital expenditure, unfavorable condition for investment and acute power shortage that are impeding the country´s growth rate.
"We have to focus on maintaining balance in the economy to avoid future disasters," Prithvi Raj Ligal, former vice-chairperson of the National Planning Commission, said. “We should have an effective monetary policy to drive the country´s economy on the right path."
Saying that the economy is suffering due to some structural problems, Ligal said the government has to focus on resolving those problems.