Prakash Subedi outlines Nepal's economic growth potential and current status. Nepal has significant potential for hydropower, forestry, tourism, and minerals but has exploited little of this potential due to lack of private sector investment and friendly policies. The presentation recommends making tax laws friendlier, providing incentives for private sector investment, reducing corruption, and creating enabling policies to tap Nepal's hydropower, tourism, forestry, and mineral resources in order to spur economic growth.

1. Creating enabling environment for
increasing government revenue and
private sector investment in Nepal
for economic growth and
development
Prakash Subedi

2. Outline of the presentation
• Background of economic growth potential and
current status of Nepal
• How to increase government revenue
• Future plan for economic growth of Nepal

3. Background of economic growth
potential of Nepal
1. Hydro power – 84,000 Megawatt (220 billions
cubic meters of water run through Nepal every
year)
2. Forest – 40% coverage with 700 plus high value
medicinal plants
3. Tourism – 8 highest peak are in Nepal including
Mount Everest out of 10 highest peak of the
world
4. Minerals – petroleum, iron, worlds second
largest stock of limestone in in Nepal, uranium

4. Current economic status
Hydropower generation – 750 Megawatt till
date
– Cause: No friendly policies to promote private
sector investment
– No security of investment of private sector
– Concern government body is highly corrupt and
recruited on the basis of political idiology

5. Current economic status
Forest – it is shameful Nepal is importing timber
from Malaysia
– Cause: No proper planning for forest sector
development
– Preconceived and corrupt mind set of
Government staffs
– Policies are very conservative on forest sector
enterprise development

6. Current economic status
Tourism – tourism is still in early stage for its
development
– Cause: Nepal is not being able to exploit its
tourism sector potential due to lack of attractive
package from government sector for private
sector
– Political uncertainty and other issues related to
transparency

7. Current economic status
Minerals
– Cause: lacks proper policies to exploit the minerals
from government side
– Nothing is done till date for extracting such
valuable minerals which have huge economic
potential
– Only coal in small scale is being extracted till date
– No private sector friendly policy for development

8. How to make enabling environment
for increasing government revenue
• Making tax laws friendly to the tax payers
• Providing tax incentives to the private sector
• Maintaining transparency in government
expenditures
• Reducing government expenditures
• Incentive and friendly environment for bring
informal sector in the main stream of economy
• Deregulation

9. Future plan for economic growth of
Nepal
• Revolutionary change in policies for economic
growth and sustainable resource exploitation
• Creating enabling environment for exploitation of
hydropower, tourism, forestry and mineral sector
of Nepal
• Highly friendly policies for tax payers
• Incentive packages for the entrepreneurs
• Value the private sector as a leader of economic
growth
• Maintain transparency and rule of law

10. Thanks