December 19: Economists have urged the government to take immediate measures to bail out the country's economy from crisis, arguing that the banking sector has been facing liquidity crunch while the capital expenditure is meagre, and the balance of payments (BoP) has been increasing.    

The balance of payments in the last four months is in deficit of Rs 1.51 billion, according to Nepal Rastra Bank.    

The foreign currency reserve is also declining. In the recent months, remittance inflow has also declined. The development activities have not gained pace. The banking and financial sector is not able to extend loan as deposit collection has not increased. The import of luxury goods has impacted on foreign currency.    

Speaking at a recent interaction organized in the capital, economist Dr Chandramani Adhikari said that the country's economy is in imminent crisis. According to the state-owned national news agency RSS, he suggested the government to increase foreign currency reserve through export of goods and services and give priority to foreign investment.    

Another economist Dr Dilliraj Khanal wondered why the production is stagnant when the banks have stepped up investment.

Former governor of Nepal Rastra Bank and economist Dipendra Bahadur Chhetri stressed on banning import of certain luxury items. He argued that the capital expenditure remains dismal due to managerial weakness. The current problem is not only the result of political system but also of the budget system, he added. Chhetri further said that the government did not have a clear trade policy.