KATHMANDU, Feb 24: Minister for Finance Barsha Man Pun has directed the officials concerned to immediately do the needful for improving performance of Priority One (P1) projects that have reported poor progress over the first half of 2012/13.
At a meeting of Ministerial Development Action Committee on Sunday, Pun also stressed the need to arrange additional budgets to projects that are important for national development.
Expressing dissatisfaction over low utilization of Youth and Small Entrepreneurs Self Employment Fund, Pun asked officials to put in place a mechanism to monitor effectiveness of the programs that are running under the fund.
To properly utilize the fund, Nepal Rastra Bank Governor Dr Yuba Raj Khatiwada said the government should issue collateral-free loan only to those who don´t have fixed assets. Those who have fixed assets shouldn´t be given collateral-free loan, he said.
He also said commercial banks have been complaining that risk of bad debt is very high while issuing collateral-free loans as envisaged by the fund.
Finance Secretary Shanta Raj Subedi directed chiefs of all development projects to work with the target of achieving 100 percent progress by the first eight months of the current fiscal year. He also asked the officials to achieve 50 percent of annual target by within the second trimester of the current fiscal year.