Bhattarai highlights capital market to boost economy

Finance Minister Dr. Baburam Bhattarai said development of the capital market along with growth in industry and employment opportunities was necessary to attain economic prosperity.

Bhattarai said the objectives of socialism could be achieved with the development of capital in the market and realistic growth of real sectors.

"We want to develop the capital market which has a direct relationship with industry, production and employment generation, otherwise we will face an economic crisis," Bhattarai said Tuesday, referring to the present global economic meltdown, at the opening of Elite Capital Ltd., the first specialised merchant bank in Nepal.

Reiterating the commitment of the Maoist-led government to develop the private sector, Bhattarai, who is also a senior leader of the CPN-Maoist, said the government was ready to formulate policies and regulations favourable to private enterprise.

"We are against the idea of contracting the role of the private sector. We will play the role of facilitator so that more capital can enter the market to augment industrial capital and for infrastructure development," he added.

He also stressed simultaneous growth of the real sector along with the booming financial sector to achieve the expected level of economic development. He warned that the country's sovereignty and independence would be lost if the per capita income didn't rise to at least US$ 4,000 in 10 years. Nepal's per capita income is presently US$ 470.

Kush Kumar Joshi, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), asked the government to create an investment-friendly environment in order to encourage domestic and foreign investment to help unleash an economic revolution as envisaged by the government.

President of the Securities Board of Nepal Dr. Chiranjibi Nepal pointed out the necessity to maintain transparency to ensure realistic growth of the capital market.

Chandra Dhakal, chairman of Elite Capital Ltd., expressed the company's commitment to provide appropriate information about the capital market and corporate financial analysis of listed companies among other merchant banking services.
Source: Ekantipur