Former President of the Nepal Chamber of Commerce Rajendra Malla has said that Nepal must utilize barren land and channel remittance into productive sectors to revive the country’s slow economy. He expressed these views while speaking at a discussion program on “Contemporary Issues of the Economy” organized by the Nepal Chamber of Commerce on Sunday.
Malla said the government must introduce policy reforms and prioritize these two sectors. Suggesting measures that can be implemented immediately to raise the current low economic growth rate of 2.1% GDP, he said:
“The central government should formulate a policy in coordination with local levels to bring the country’s barren land into production. This can be executed through cooperatives or under a public-private partnership (PPP) model.”
He added that even simple initiatives—such as planting fruit trees on unused land along highways—could help increase production.
Malla expressed concern that although billions of rupees in remittances flow into the country, they are not being used properly.
He said:
“Around Rs 592 billion in remittances entered the country in just three months, but this amount is being spent on unproductive sectors.”
He suggested that the government should create an environment in which a certain percentage (for example, 10%) of remittances sent by Nepalis abroad could be invested—with their consent—in national infrastructure and hydropower projects.
Malla also criticized some impractical policies in the banking sector. He argued that although banks currently have excess liquidity, the rule restricting individuals from taking personal overdrafts (OD) of more than Rs 5 million has reduced the flow of money in the market.
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