Government to take necessary initiatives to resolve cooperative issues

KATHMANDU: The government has pledged to take necessary initiatives to address issues in the banking, financial institutes, microfinance, and cooperative sectors.

The government assured of this in its policies and programmes for the upcoming fiscal year 2081-82 BS (2024-25) presented by President Ram Chandra Paudel at a joint meeting of the Federal Parliament today.

The government will be pursuing a policy to come with legal, policy-level, and some new provisions to address the issues plaguing banks, finances, and cooperatives.

The government has announced that the regulation, supervision, and healthy competition will be promoted by implementing submissions achieved from various quarters to address the issues in such institutes and the capital market.

It has assured of the facility of loan re-tabulation and restructuring for microfinance debtors, adjusting the cooperative policy as per the need of time.

Cooperatives will be mandated to get connected to the Cooperative and Poverty-related Management Information System.  Cooperatives with government ownership will be facilitated for integration and savings and credit cooperatives will be encouraged for going for a merger, according to the new government policies and programmes

The government aims to integrate scattered small capital to implement big projects and seek the involvement of private investment companies to operate and manage closed industries such as the Gorakhkali Rubber Industry, Butwal Spinning Mills, and Hetauda Garment Factory.

The government is to pursue policies for ensuring just, balanced and estimable revenue distribution.

Grants will be transferred with conditions being based on the objective criteria and integrated laws will be formulated for determining the mobilization and sharing of natural resources, investment, and profit-sharing among the three-level governments, as well as for resolving related disputes among them.  The government has a policy of mobilizing innovative instruments of development finance with additional legal provisions for the encouragement of private capital mobilization.

It promises to undertake legal and structural interventions to enhance the domestic and external investment atmosphere and to expand it.  As the government said, it will facilitate bringing about foreign loans and other mixed forms of investment.

“Nepal’s country rating will be concluded in the upcoming fiscal year. The approval process for domestic and foreign investment will be further simplified, making it convenient and predictable through the implementation of the automated digital system,” the fresh policies and programmes state.