A survey report published by the Confederation of Nepalese Industries (CNI) has sent shockwaves throughout the nation, dispelling the government's claims of an economic recovery. Despite Prime Minister Pushpa Kamal Dahal's optimistic rhetoric about foreign currency reserves and remittance inflows, the ground reality, as highlighted by the CNI's report released on Monday, paints a bleak picture of Nepal's economic health. This calls for the government to urgently move beyond mere assertions of economic recovery and take concrete measures to revive the private sector's confidence and stimulate additional investment.

The CNI survey report reveals alarming statistics that cannot be ignored. The overall demand for manufactured goods, construction materials, and consumer goods has plummeted by 12.06 percent in the first quarter of this fiscal year. This decline is exacerbated by a surge in raw material prices and a notable drop in their imports. The manufacturing sector's transaction volume has further declined by 7.46 percent, showcasing the severity of the economic challenges. This shows that PM Dahal's recent portrayal of the economic landscape as a success story, citing improved external sector indicators, is, at best, a distortion of reality. While celebrating the rise in foreign currency reserves, the government seems to overlook the recessionary storm brewing within the domestic economy. Such misrepresentation only serves to deepen the prevailing economic crisis.

One of the most alarming revelations from the CNI report is the significant erosion of entrepreneurial confidence. Since last year, the confidence level has been on a downward spiral, and this year, it has hit a new low. A staggering 55.32 percent of entrepreneurs are adopting a 'wait and watch' approach, putting their investment plans on hold. This hesitance stems from the lack of a conducive investment climate and the government's failure to address the pressing issues faced by the private sector. Additionally, the report highlights specific sectors that have borne the brunt of economic challenges. The demand for cement, a vital indicator of construction activity, has plummeted by 39 percent in the last fiscal year, with an additional 9.54 percent decline in the current fiscal year's first quarter. Consumer goods, including fast-moving consumer goods, witnessed a 17.70 percent decline this year, a stark contrast to the 2.50 percent increase recorded in the same period last year.

CNI President Rajesh Kumar Agrawal's assertion that the government is disseminating false reports for its advantage underscores the urgent need for transparency and accountability. Improved external sector indicators, while important, cannot be the sole metric for gauging the overall health of the economy. As a newspaper, we urge the government to acknowledge the severity of the economic crisis and move beyond rhetoric to implement tangible measures that instill confidence in the private sector. The decline in demand, coupled with the erosion of entrepreneurial confidence, demands immediate attention. The government must foster an environment conducive to investment and address the specific challenges faced by different sectors. It's time for decisive action to salvage Nepal's economy from the depths of recession and pave the way for sustainable growth.

 
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