Economist Urges Political Parties to Center Manifestos on Nepali Economy

Kathmandu. Economist Nar Bahadur Thapa has stated that political parties must keep the Nepali economy at the center while preparing their manifestos. Presenting a working paper at the program 'Economic Agenda in Party Manifestos' organized by the Nepal Economic Journalists Association in Kathmandu on Sunday, Thapa emphasized the need to draft manifestos that are contemporary and grounded in reality.

He noted that the recent rebellion by the youth must be taken into consideration. He stressed that the second generation of economic reforms should be incorporated into the manifestos, and the core issues of the economy must be clearly articulated.

"This time, the issue of economic good governance has gained priority in the elections. The technological revolution, changes in the global economy, and climate change have also had an impact. Parties must incorporate all these aspects into their manifestos," Thapa said.

He also mentioned that parties are in a compulsory situation where they must address the aspirations of the people amidst challenges.

Thapa stated that all parties should boldly include the agenda of attracting foreign investment in the agricultural sector. He believes that the private sector will develop if agricultural produce can reach the global market. He also pointed out that laws and regulations must be private sector-friendly.

He mentioned that even though the points included in previous party manifestos were fulfilled, there is no room for satisfaction. "Parties include points in their manifestos regarding social security allowances, hydropower, health, education, and other sectors. Many of the goals they set have been achieved. However, there are many areas for dissatisfaction," he said. "The fact that manifesto promises are not based on reality, and the short tenure parties get in state power, are reasons why the things written in their manifestos have not been implemented."

Stating that the size of Nepal's economy is small, he stressed the need to expand it. He said that the economy cannot be positive without job creation, and everyone should focus on this. He expressed concern that the capital formation ratio in GDP is declining. "The capital formation ratio in GDP is on a declining trend. The private sector's contribution to GDP is only 62 percent. At one time, it was up to 80 percent. But now it is decreasing. Why is the private sector not investing in this country? Parties must clearly state this," Thapa said.

He also stated that issues related to the financial sector must be included in party manifestos. He warned that if the current bloated state of the financial sector is not addressed in time, the economy will face major problems.

He further stated that the country cannot sustain a 25 percent trade deficit for long, and the plan to integrate the Nepali economy with the global economy should not be missed.