Finance Minister Dr. Ram Sharan Mahat has said with a view to promote domestic industry, the government has asked security personnel including Nepali Army to eat domestic chicken instead of goat imported from India.

Finance Minister Dr. Ram Sharan Mahat

Finance Minister Dr. Ram Sharan Mahat (File Photo)
According to Nepal Hatchery Industry Association, about 16 billion Nepali rupees have been invested in poultry industry and nearly 150,000 kg of chicken are produced every day in the country.

Minister Mahat was responding to businessmen’s concern that the government had not done enough in the new budget—that came into effect from Monday—to support Nepali industries. The minister had earlier said the government had made it mandatory for the armed forces to buy cloth for their uniform from Nepali textile factories with a view to promote domestic industries

Addressing a post-budget interaction organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in the capital on Monday, minister Mahat said the main theme of the new budget—that was unveiled last week—was to provide resources to the village. “There should be no reason for anybody—except political interests—to oppose such a budget,” he added.

Dr. Mahat said the budget also aimed at reviving an environment for investment in the industries. He said the government had also given emphasis on promoting exports. “The economy that doesn’t export is bound to be doomed. Either you export or perish,” he added.

Minister Mahat also warned that the government would take strong action against “willful defaulters” if they did not re-schedule their loans within the next two months and started paying back their loans. “The government must be strict (to recover loans) since the money of the banks belongs to the depositors,” he added.

According to Nepal Rastra Bank, the total Non-Performing Assets (also known as ‘bad debt’) of the banking system in Nepal amounts to nearly Rs 29 billion. Majority of this belongs to the state-owned Rastriya Banijya Bank and public sector Nepal Bank Limited.

Addressing the programme, president of the FNCCI Chandiraj Dhakal said the government’s target to raise the economic growth to 5 percent in the fiscal year 2006-07 could not be termed ‘ambitious.’ He, however, said the government had failed to materialize the concept of public-private partnership in the new budget also.

Mr. Dhakal said country’s economy could not revive unless there was a stable political environment.