Challenges in the Nepalese economy but there is great potential for economic growth: Haruhiko Kuroda, Former Governor of the Bank of Japan

Oct Sun 2023 02:23:48

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Challenges in the Nepalese economy but there is great potential for economic growth: Haruhiko Kuroda,  Former Governor of the Bank of Japan

Kathmandu. Haruhiko Kuroda, the former governor of the Japanese central bank, Bank of Japan, has said that although there are some challenges in Nepal's economy, there is great potential for economic growth. Kuroda, who is also the former chairman of the Asian Development Bank, said at a press conference held at Durbarmarg in Kathmandu that there are some problems in the Nepalese economy, but there is great potential for economic growth.

Recalling that he had visited Nepal 10 years ago, former Governor Kuroda said that he had felt a great change in Nepal's economy during these 10 years. "I have been impressed by the economic development of Nepal in the last 10 years, but there is still a lot of potential for economic development here," he said. He said that he saw potential in three sectors of Nepal's economy. He said that human resources, water resources and environmental resources are abundant in Nepal and if these resources can be utilized properly, economic development will take place in Nepal. He mentioned that there are still many challenges in Nepal and said that he is confident that the government of Nepal and the political leadership here will pay attention to it.

He informed that during his visit to Nepal, he met with economists, political leaders and stakeholders and discussed the economy. During the press conference, he insisted that Nepal should be careful before taking too much debt. Noting that the ratio of gross domestic product (GDP) and debt in Japan is 263 percent, he said that it is easy for Japan to borrow because of the current account surplus. But he argues that Nepal's current account deficit should be taken before taking a loan.

Japan's current account is in a big profit. This type of savings has made it easy for the Japanese government to take loans. He said, "In my opinion, Nepal should be careful before taking more loans." Even if there is a need to take loans, concessional loans should be taken from institutions like the Asian Development Bank and the World Bank.

In a press conference, former Vice President of Asian Development Bank Vindunath Lohani said that he was happy to welcome former Governor Kuroda to Nepal. He mentioned that he was impressed by former governor Kuroda's optimistic view of the Nepalese economy. He insisted that the attention of the political leadership should be focused on economic growth and the development and employment of the youth in Nepal.