KATHMANDU, April 11: The High-Level Economic Reforms Advisory Commission has advised the government not to imprison businesspeople for general crimes, citing the negative impact on economic growth.
Led by former Finance Secretary Rameshwar Khanal, the commission submitted its report to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Friday, urging the government to avoid actions that disrupt economic activities. Khanal stressed that imprisoning businesspeople harms industries and the economy.
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Khanal explained that the country's economic issues stem from weak aggregate demand, which has led to a reduction in purchasing power and investment. While weak demand contributes to the slowdown, the commission found that problems also exist on the supply side.
The commission recommended improving both demand-side and supply-side policies. It highlighted that the government has not implemented suggestions from the Public Expenditure Review Commission, led by Dilliraj Khanal, and urged the government to address these issues. The commission also recommended adopting suggestions from the High-Level Tax System Reform Committee, led by Bidyadhar Mallik, for tax policy and administrative improvements.
Further, the commission urged the government to adopt a more open approach and take steps to capitalize on international benefits. It also recommended keeping current expenditures within revenue limits, ensuring revenue savings, and prioritizing projects that can be completed within five years, regardless of budget size. The commission suggested halting projects that cannot meet this deadline and proposed abolishing offices related to economic matters.
