Private Sector Morale Deteriorates, Economy Stagnates: Vishnu Prasad Ghimire

Kathmandu. The real estate market has been sluggish for several years, affecting the overall economy. The government has not implemented policies to boost the real estate sector.

The real estate business is not just a personal profit-making sector, but the backbone of the national economy. Until the government makes it stable and transparent, the country’s economic prosperity will remain incomplete.

Although the market is not completely stagnant, it is extremely slow. According to statistics, the previous month saw a revenue collection of around Rs 6.37 billion. The business is ongoing, but it’s not at the pace it should be.

The sector has been in a state of confusion for the past three to four years due to local elections, government changes, and some strict policies of the Nepal Rastra Bank.

The real estate business is not just about buying and selling land; it’s a sector that mobilizes capital and gives life to hundreds of other industries.

Looking at the current situation, the economy of the fiscal year 2082/83 is expected to improve. The interest rate is gradually decreasing, but the economy was not able to move forward as much as expected.

The main problem is the lack of policy clarity. The government’s decision to open and close the land registration process has put both the general public and businessmen in a difficult situation.

The second problem is the land use policy and land classification. Out of 753 local levels in Nepal, only around 340-342 have partially classified their land. Land registration is closed in areas where classification has not been done.

The third problem lies in the banking sector. The Nepal Rastra Bank’s policy and the process of providing loans by banks are very complicated.

To boost the real estate sector, the government needs to make the land registration process easy and permanent. The land classification process should be completed on a war footing.

Another important thing is to make the income source of those who buy real estate practical. Most of Nepal’s business is informal. Farmers who sell goats or grains do not have a formal income source, making it difficult for them to get loans.

The government should consider the real estate sector as a mutual industry rather than an unproductive sector. Our demand is clear. The problem of land use should be solved, and the legal complexities in land registration should be removed.

If the government implements these policy reforms, the sector will return to its old pace, and the economy will move forward immediately.