Kathmandu, Sept 22- Stating that the economy is progressing on the right track, Finance Minister Yubaraj Khatiwada said the country is expected to achieve growth for the third consecutive year this fiscal.

He also expressed hope that the country will achieve higher growth over next several years, as the government has set the foundation for sound, equitable and inclusive growth.

“Higher growth provides incentives for private investors, who should tap the opportunities by injecting investments in productive sector,” said Khatiwada. Stating that the bubbles seen in property and stock market are being managed well, the finance minister further said that the government is also conscious about trade cycle bubble. Addressing the NewBiz Business Conclave titled ‘Banking Strategies and Disruptions’, finance minister shed light on some external shocks and governance-related issues in banking sector.

Khatiwada said that banks and financial institutions (BFIs) have to look into the sustainability of their financing. “The landscape of BFIs’ financing is changing, as they have shifted their focus to manufacturing and small and medium enterprises in recent years,” he said. “While this will support growth along with job creation, we have to invest in infrastructure sector to sustain the growth.”

He urged the BFIs to be a part of broader infrastructure investment programme that includes hydro, tourism related infrastructure and urban transportation, among others. He also urged BFIs to collect deposits for the medium term and mobilise other instruments eyeing the changing liability while investing in infrastructure, which will take a few years to generate returns.

Source: The HImalayan Times