National Planning Commission Vice Chairman Cites Lack of Problem-Solving in Nepal's Government Machinery

Vice Chairman of the National Planning Commission, Dr. Prakash Kumar Shrestha, stated that there is a deficit of problem-solving within Nepal's governmental apparatus. Speaking at the 'Prosperity Dialogue' organized by the Rotary Club of Vision Kathmandu, Vice Chairman Shrestha emphasized that a radical transformation in governmental work style, political mindset, and social perspective is necessary for the nation's prosperity.

He expressed concern over the prevailing tendency in government mechanisms to stretch, sustain, or deflect problems rather than resolve them. He noted that politicians are often more interested in the development of their respective constituencies than in the overall economy of the country.

According to Vice Chairman Shrestha, the expanded scope and size of the government following federalism have made it more difficult for the private sector to operate. He argued that as the government grows larger, the grounds for corruption also increase, highlighting the need to allow the private sector to take the lead in certain areas.

Stating that 20 percent of the population still remains below the poverty line, with poverty reaching up to 78 percent in some local levels, he defined prosperity not just as money but as the quality of life.

His analysis suggests that the social mindset is excessively focused on the distribution of wealth rather than on wealth creation. While distribution is necessary for social justice, he noted that economic growth has slowed because production and wealth creation have been marginalized. Furthermore, Shrestha pointed out that the growing desire among youth to move abroad poses a significant challenge to the country.

Since Nepal is situated between large economies like India and China, he stated that competing with their mass production capabilities is difficult for Nepal, suggesting a focus on high-value products as the way to overcome this challenge. He believes the information technology and tourism sectors can play a significant role in this.

During the program's 'Prosperity Debate' panel discussion, Bharat Raj Acharya, Treasurer of the Federation of Nepalese Chambers of Commerce and Industry, suggested that the high income tax rate is diminishing the motivation to work, necessitating reforms. He stated that when a large portion of income goes to taxes, people struggle to meet their basic needs.

Similarly, Ganesh Karki, President of the Independent Power Producers' Association, Nepal (IPPAN), presented an example of misalignment between government goals and policies. He pointed out that while the government has set a target to produce 28,500 megawatts of electricity by 2030, the Nepal Electricity Authority (NEA) has introduced a 'take and pay' policy, implying they will only purchase electricity when they desire. He stated that this contradiction between targets and policy is discouraging investors.

At the event, Jagat Pokharel, President of the Rotary Club of Vision Kathmandu, remarked that the current necessity of the nation is prosperity, requiring dialogue and cooperation among all sectors. He mentioned that the Rotary Club of Vision Kathmandu has initiated the 'Prosperity Debate' for this purpose. During the program, the declaration of the Rotaract Club, comprising Gen Z youth from the club, was also made.