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Ex-Chief Justice Shrestha raises serious questions over necessity and utilization of foreign loans

Formation of commission and formulation of laws to receive foreign loans emphasized


25 September 2022  

Time taken to read : 4 Minute


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KATHMANDU: Former Chief Justice Kalyan Shrestha has raised serious questions over the utilization and purpose of availing foreign loans.

He has demanded to make public detailed information about the areas where foreign loans taken by the government were being utilized.

Stating that though news of the cabinet approval of foreign loans were regularly made public by spokesperson of the government, the former Chief Justice demanded the government to promptly provide all information about where and how such loans were being utilized.

Saying the government’s inclination to increase the debt of Nepalis every year was very serious and highly objectionable, he viewed that sustaining democracy would not be easy when the economy was going downhill.

The ex-CJ wondered if foreign loans these days were being spent only on foreign junkets and for buying expensive cars.

Formation of commission and formulation of laws to receive foreign loans emphasized

Similarly, former Chief Justice Shrestha demanded the formation of a separate commission for overseeing incoming foreign loans and their ulitization.

Saying that serious questions were raised about foreign loans, he said that the government should take foreign loans only by enacting a law and setting up a commission.

Speaking at a recent program in Kathmandu, he sought answers to queries such as the foreign loans taken till date – Where has it gone? In which areas were it used?.

He added now on loans should be taken only through a commission.

“Now we have to take loans only by making laws. We ought to determine if loans are needed or not? From where and how to receive loans? A loan commission should be formed in such as way that it would be easy to seek experts’ suggestions on whether a loan is necessary or not. The manner by which the government is increasing the debt burden on Nepalis is no longer acceptable.”

The ex-CJ also expressed worry over such situation wherein government revenue not being able to cover the government’s general expenses. He regretted the circumstance in which government was relying on foreign loans to pay salaries to civil servants.

“I was very worried knowing that the revenue could not even cover country’s normal expenses. How is the country running like this?” he questioned. “The crisis in Sri Lanka has already proved that democracy cannot be sustained after losing control of the economy. Are we to head towards the same situation now?”

He also sought clarification over why the government needed to take foreign loans.

He wondered how much improvement was made in the fields of education, health infrastructure development, among others, by the utilization of foreign loans.

“Why do we need the Ministry of Education that is not able improve education? Why do we need a health ministry that cannot save the lives of citizens and why do we need an Agriculture Ministry that cannot increase produce?”

Publish Date : 25 September 2022 21:46 PM

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