After the measures taken so far to revitalise the realty sector and stock market proved fruitless, the government is gearing up to introduce some new measures.

Among the measures under discussion for the realty sector include converting unsold housing apartments into hotels and the government purchasing them—either for its employees or for its own use. “These are the alternatives we are currently exploring,” said Finance Minister Barshaman Pun at a programme here on Thursday.

The finance minister, however, made it clear that these measures can only be taken if apartment developers slash prices. Amid

low demand for apartments, the Nepal Rastra Bank (NRB) has also time and again suggested developers to cut down prices to attract potential buyers.

The government through the budget has opened door for Non-Resident Nepalis (NRNs) to purchase houses and apartments here. The budget also allowed foreign nationals and companies to purchase apartments worth $200,000 and above. Other relief measures offered by the budget include the increment in the threshold of income source disclosure to Rs 10 million in land and housing transactions.

For the stock market, the government considering a provision under which investors need not disclose their income sources for a certain amount of investment. “We are also working on other measures to attract institutional investors in the share market and expanding stock trading to outside Kathmandu,” said Pun.

He said despite most of the economic indicators heading in a positive direction, the realty sector and the stock market are still suffering, needing the government’s intervention.

Finance Minister Pun said economic indicators, including capital expenditure, exports, foreign exchange reserve, remittance and revenue collection, are heading in a positive direction. “Capital expenditure remained at Rs 5.29 billion in the first four months, which is better than last year’s figure,” said Pun, adding that he has told ministries to either spend their capital expenditure budget or the it will be withdrawn to finance other well performing ministries and projects.

Diesel plant with political consensus
Amid debate over whether to bring diesel plants to reduce load-shedding hours, Finance Minister Pun said the government will seek political consensus on the matter. “A a meeting between the prime minister and ministries concerned, we suggested the Energy Ministry to bring diesel plants up to 100MW this year through political consensus,” said Pun, adding that the

government and the consumers, however, should be ready to pay high rates for the energy produced from diesel plants.



Oil price hike

As far as the government’s plan to hike fuel prices are concerned, it is all set to introduce a cost sharing measure. “The government is likely to take a decision at Friday’s meeting between the prime minister, finance minister, commerce minister and other officials,” said Pun.

According to Pun, NOC has demanded additional Rs 5 billion to ensure smooth supply of petroleum products although the ministry has provided Rs 3 billion over the last three months.



Re-designing the YSEP

The government is all set to redesign its Youth Self-Employment Programme (YSEP) so as to meet the target of creating 50,000 jobs.

In the last four years, only 1,872 individuals have benefited from the programme, according to Youth Self-Employment Fund (YSEF).

Finance Minister Pun said the government would create a coordinated mechanism so that many youths could get loans and start businesses. “We are holding talks with youth organisations, entrepreneurs and bankers in this regard,” said Pun.

According to Pun, state-owned banks, including Agriculture Development Bank Limited (ADBL), Rastriya Banijya Bank and Nepal Bank Limited, will be the government’s first choice for executing the programme. “ADBL has sought Rs 2 billion,” said Pun. The banks will arrange separate desks for YSEP and the Federation of Nepalese Chambers of Commerce and Industry has also agreed to arrange such desks in their district chambers, according to him.

source: The Kathmandu Post, 23 Dec 2011