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Kathmandu, November 16: Finance Minister Rameshwar Prasad Khanal said that in order to revitalize the country’s overall economic sector, it is necessary to further activate the capital market and the real estate market.
Speaking at a discussion program on “Contemporary Economic Issues” organized today by the Nepal Chamber of Commerce, Minister Khanal said that the activeness of both markets is essential to expand economic activities. According to him, the government is internally discussing possible legal amendments through an ordinance to remove obstacles seen in real estate transactions.

“To make real estate transactions easier, the government can introduce certain provisions through an ordinance, or it can use its executive authority to carry out necessary reforms,” he said.

Minister Khanal clarified that the government cannot fulfill all demands of the private sector but emphasized that coordination and cooperation are crucial. “All demands of the private sector may not be fulfilled immediately, nor is it sensible to forcefully implement them—implementation itself becomes difficult. But on matters of improving the business environment, increasing production, and boosting employment, the private sector and the government must move together. Employment generation, expanding domestic businesses, and attracting investment are among the government’s top priorities,” he stated.

Minister Khanal informed that the Gen-Z protests that took place on September 8–9 caused massive damage in 514 local levels across 55 districts. The initial estimate shows that the private sector alone incurred losses of around Rs 36 billion. Combining both the public and private sectors, the total damage amounts to Rs 78.51 billion. Among this, insurance claims worth around Rs 23 billion have already been filed by the private sector, and more than 400 claims are currently under the payment process, he said.

Minister Khanal also stressed that rebuilding trust between the government and the private sector is crucial for economic recovery. “The role of the private sector is larger than the government’s when it comes to increasing employment and expanding production. The government’s role is facilitation and regulation,” he said.

Stating that economic activities cannot progress rapidly unless an environment of trust is established in the country, Minister Khanal said that reforms have begun in the customs system to reduce transaction costs. He expressed commitment to making customs clearance based on transaction value and scrapping the reference price book used in valuation.

Similarly, he warned that strict action would be taken against anyone involved in illegal activities such as unauthorized trade, black-marketing, excessive price hikes, and monopolistic practices. He said that business audits should be conducted solely on the basis of risk analysis and specific challenges.

He added that increasing the number of taxpayer service offices is a government priority. However, the government cannot immediately move forward with implementing multiple VAT rates, he clarified. Minister Khanal said that continuous discussions are being held between the Ministry of Finance and Nepal Rastra Bank regarding the implementation of working capital guidelines, among other issues. He assured that the government will continue providing policy support through monetary measures to make business and economic activities more convenient.

People’s News Monitoring Service.