IT is disheartening to note that the global economy has been showing signs of sharp decline with the spread of the novel coronavirus. The COVID-19 pandemic that has already infected 3.35 million people and claimed about 240,000 lives across the world has had adverse impact on employment and economic growth. However, no one has died from the deadly virus in Nepal so far, thanks to the timely preventative measures taken by the government. But the number of confirmed COVID-19 cases in the country has risen to 69. This figure is insignificant as compared to the virus infections in other countries, including neighbouring India. Despite this, the virus transmission and subsequent government interventions, including enforcing of nationwide lockdown, have continued to pose a serious threat to Nepal's economy. If the current uncertain situation lingers, the country's economic crisis may turn more complicated. To help the business community to recover their losses, the government recently has announced some relief package.
As the government is working on the budget for the upcoming fiscal year, it still has sought suggestions from the private sector. It is a challenging task for the government to revive the national economy and keep it going smoothly in this difficult situation. The private sector has expected additional relief packages from the government to restore economic stability. As all the economic activities have remained disrupted since the enforcement of the lockdown on March 24, private entrepreneurs have been quite worried. Over the last 40 days, only the supply of essential goods and services have been in operation across the country. Against this backdrop, it has been difficult for industrialists and businessmen to sustain their businesses, pay wages to workers and interests to banks and financial institutions.
According to a news report published in this daily on Sunday, leaders of the private sector, while taking part in a virtual pre-budget discussion, have articulated their concerns over the uncertainty caused by the spread of the coronavirus, prolonged lockdown and disruption of economic activities. Once the private sector is incapable of resuming businesses, more people may lose their jobs. This will also lead to less investment. Even the government will lose a lot of revenue. Considered as an engine of growth, the private sector has called upon the government to introduce fiscal relief packages equal to at least 5 per cent of the nation's gross domestic product (GDP). It has also demanded rebates on electricity tariffs for the industries during the lockdown.
Minister for Finance Dr. Yuba Raj Khatiwada, however, has said that the government would unveil a fiscal rehabilitation package in the near future to revive the economy. He has urged the business community to join hands with the government for restoring the economy back to the post-COVID-19 scenario. In fact, relief injection alone may not be a solution to sustain the economy. However, the current unfavourable situation needs to be handled in a careful manner. The government must come up with relief package and economic recovery plans that work. There should be collaborative efforts between the government and the private sector to stimulate the national economy during this difficult situation.