Kathmandu. The ‘Good Governance Roadmap, 2082’ recently released by the Government of Nepal contains important strategies and action plans for the improvement of the insurance and financial sector }.This document points out the structural problems in the financial sector and proposes various reform measures to solve them.
The roadmap specifically focuses on financial access, insurance protection, and capital markets modernization.
1. Challenges and Reform Plans in the Financial Sector: The Roadmap identifies the main challenges of the financial sector as weak regulatory capacity, increasing non-performing loans and limited access to finance in rural areas}. The following points are mentioned in the documentation to solve these problems:
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End of debt centralization{}: End the trend of lending to a limited sector and diversify investment }.
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Digital Payments & Access{}: Strengthening the digital payment system and expanding financial literacy and access to the village level }.
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Financial Discipline}: Integrate all economic activities of government and public bodies into the banking system and maintain financial discipline. .
2. Assurance of Insurance and Deposit Security
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In view of the crisis in the cooperative and financial sector, the roadmap proposes a special provision to protect the interests of savers and insured:
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Savings Withdrawal and Security Fund}: Immediate reform measures such as the issuance of ‘Savings and Credit Security Fund’ and ‘Cooperative Debentures’ have been put forward for the protection of deposits and withdrawal of savings in the co-operative sector }.
- Social Security and Grants{}: A strategy has been adopted to link the social security and grants given by the state to the productive sector and to scientifically manage its financial obligations .
3. Capital Markets and Investment Promotion: Capital{ Diversification of financial instruments and increased participation of institutional investors is aimed at developing the market }. { In addition, there are plans to transform the Investment Board into a more autonomous and specialized body to facilitate the inflow of large investments into }.
4. Public Finance Management and Transparency: }The roadmap prioritizes ‘real-time’ payment systems and ‘digital tracking’ TAG_OPEN_span_33TAG_CLOSE_span_34 to make public finance management transparent. A legal provision has also been proposed to publish a ‘Financial Risk Report’ annually for the reduction of financial risk {TAG_CLOSE_span_32}}}.
This roadmap aims to address citizens’ expectations by making Nepal’s public administration and financial sector technology-friendly, transparent, and accountable }.
