Kathmandu. There is a kind of paradox in Nepal’s economy at present. The government does not have enough capital for development, but there is a high liquidity that can be invested in the banking system. This paradox has given rise to the question, can Nepal’s engine of prosperity now become the banking sector? This article is centered around this question.

Contemporary is the most trusted and trusted sector of Nepal, bank and financial sector. In terms of being comparatively reliable and trustworthy, the general public has some kind of relationship with these organizations. Banks and financial institutions are not only the pillars of trust in today’s Nepal but also the source of capital. But these organizations have failed to set a clear roadmap in recent years.

The result of the political changes after 046 years and the liberal economic policies ensured by it have made a leap in the banks and financial institutions in the {{{} private sector and financial institutions. Nepal Rashtra Bank and the old managers of these institutions have contributed to strengthen the backbone of the bank and the financial and the old {{} ({{} to strengthen the backbone of the } banks} and financial {{} institutions. But at present, at the scale at which (approximately 15 trillion) of the banks have accumulated investable liquidity, the to manage and to expand targetedinvestments in monetary and financial policy {{} does not seem to be }}}. In other words, the banks are not able to to by expanding investment.

For example, the government recently brought a budget of Rs 21.24 trillion for the financial year 083-084. There were various comments about the budget. But regardless of the budget,the main issue is the guarantee of capital resources. Without capital, the aspirations of the people cannot be satisfied. If the capital does not meet it, will only accumulate dissatisfactions. In particular, the failure of the previous governments to address the needs of the people is also due to the weak capital budget. And, the main factor element is also the capital for development construction and addressing the people’s aspirations. If the government is able to invest enough, the private sector can also increase investment accordingly. If the government does not increase investment, infrastructure{{} cannot be set up for the expansion of investment in the private sector, then investment cannot be expanded. Therefore, in today’s world, capital is the driver of development. In the absence of capital, it is difficult to urinate, but in the city, it is the same.

Therefore,capital is the main instrument for the development, construction and prosperity of any nation. That instrument can be attributed to the credibility shown by the government, its business-friendly role, and its flexible economic policies. For example, the capital budget allocated for development construction in this year’s budget is Rs 431.10 billion i. e. 20.3 percent of the total budget. The source of that allocated budget is not guaranteed. It is said that the sources of insufficient budget will be raised from internal and foreign loans and grants. For example, Rs 1,270.58 billion has been allocated for current expenditure. This budget is a budget allocated for essential expenses such as employee salary, office run, social security, etc. In the current situation, the budget that is supported by the source of revenue of Nepal is only for current expenditure. Apart from that, it depends on debt. With the public debt crossing Rs 30 trillion, the financial management expenditure will increase everyyear and the capital budget will shrink. Therefore, the real driving of Nepal’s development andprosperity is to encourage the private sector.

The government has been able to spend only Rs 190.84 billion out of the Rs 407 billion allocated in the last fiscal year . In other words, what is the irony behind the fact that the government has been able to spend only 46 per cent of the capital expenditure? That would be a different debate. Because that may not be the kind of loan or grant or resource that is needed. Will the development aspirations of 30 million people be fulfilled by spending a budget of Rs 200 billion in a financial year? How many jobs, how much production or productivity will be increased by investing Rs 2 trillion in a financial year? How can the private sector do if it is not able to expand investment as stated by the state? It’s worth considering. Therefore, the point that this writer is trying to make is that the private sector is now in a much stronger position than the government. The government should move forward the train of prosperity by enticing the private sector and creating a business environment like this.For example, banks and financial institutions have an investable capital of around Rs 15 trillion. If the banks can invest that capital in the productive sector, then it can increase a lot of employment and production.

For example, today’s South Korea and Vietnam supported the expansion of the private sector by providing targeted loans to the productive sector through the banking system in the early stages of industrialization. However, this does not mean that the banks of Nepal did not invest in to help in prosperity. They have already invested more than Rs 5 trillion in the hydropower sector. In recent years, banks have been increasing their investment in tourism. This sector accounts for 4 percent of the total loan of the banks.

Their investment in agriculture and farmers seems to be weak. Although 10 percent of the total loan should be invested in agriculture, banks have so far invested Rs 15 billion to Rs 400 billion. Whereas 51 percent of the people in this sector are dependent and it contributes about 25 percent to the GDP.

However, Nepal’s financial sector is comparatively strong and has contributed to the economy.And even now, if anyone can give direction to the country’s prosperity, it is only the banking sector. Because the reins of capital are not with the government, but with the financial sector. It is also a situation of sufficient liquidity. However, banks are not able to invest with certainty due to the lack of a high vision of monetary policy and monetary policy.

Banks also have weaknesses. They prefer to invest big rather than small. Whereas the country is dominated by micro-enterprises and poor farmers. Whereas in countries with more poor, peasantry, and lower income groups, financial policies that invest in them simultaneously can benefit both institutions and the economy. Therefore, banks and financial institutions need to change the roadmap of investment now. It should not be limited to the loans directed by the Rastra Bank, but should move forward with a long-term vision to increase production and increase one’s own business through economic prosperity.

In the driver’s seat of this economy, it is not the government, but the banks and barkers. Today, they are the engines of economic prosperity for Nepal’s financial institutions. Which can take the economy on the path of prosperity. Who has a lot of investable capital. There is no need to ask anyone. But bankers need to be able to show their vision, skills and capabilities. It is not just about what the National Bank has shown or directed.

Managers in the banking sector are highly paid. With high remuneration comes high responsibility. Therefore, bankers need to expand their investments with the courage and vision to change the trajectory of the economy.

Investments made with innovative thinking, high ethics and attitudes will definitely not sink. Again, the emphasis should be on new investments with potential in unlimited people rather than making big investments. Investments that cover only a limited group of people and regions will not necessarily bring about a wide range of changes. But investment that covers a limited number of classes and sectors can help in the progress of many. As a result, is supported by . The fact that there are innumerable poor people in the same society and a few people are rich neither makes the whole country rich nor does it diminish the dissatisfaction of the people. It will only lead to problems.

Therefore, bank loans should be a priority to make all the rich and all the rich. Whereas, investment can be made in such a way that people’s deposits do not sink and help in prosperity. For example, agriculture, tourism, energy and small and medium enterprises need strong stimulus. For this, you can invest the money by bringing a special loan scheme. The government makes policy, the private sector enterprise, but the banking system has the fuel to speed up both. Therefore, the time has come for the banking sector to become a key partner in economic transformation and not just a financial intermediary in Nepal’s prosperity.

If there is only a pile of money in the bank and the banks are watching, if they are afraid to expand their investment, if they think that they will sink, then does not support prosperity.The future of Nepal’s economy depends on the investment that banks make and their priorities.

Therefore, the financial sector is the engine of prosperity of Nepal. If anyone can make the economy of this country strong, self-reliant, progressive, production-oriented, employment-oriented, then it can be banks. They can play that role effectively.

Gautam is an economic writer and analyst.