Far West Province keeps one billion rupees of self-employment fund for interest income

Dhangadhi: The Far Western Province in Nepal has kept one billion rupees of the State Self-Employment Development Fund under the Ministry of Economic Affairs for a period. The fund was established in 2075/76 BS to provide loans at subsidized rates without collateral to unemployed individuals who lack capital, skills, and investment resources to develop skills and entrepreneurship.

Despite its intended purpose, the utilization of the fund has been minimal. Last year, during a meeting of the board of directors on 4th May (21 Baisakh), it was decided to mobilize the funds in the National Commercial Bank for total deposits and short-term term deposits to obtain high returns. The government-owned commercial banks were requested to raise financial resources.

As per the decision, 150 crores were kept in National Commerce, 600 crores were kept in Krishi Bikas Bank at an interest rate of 10.003%, and 250 crores were kept in a three-month term deposit in Nepal Bank Limited at the same interest rate.

The Accountant General had asked to deposit the unused funds in the reserve fund in the previous report. "This year, no other work has been conducted except keeping it in the fixed account," said the Accountant General. "The funds should be mobilized according to the purpose."

The State Assembly had already passed the State Self-Employment Bill with the objective of providing loans at subsidized rates to those who want to become self-employed in various sectors. Based on the same bill, it is said that the Ministry of Economic Affairs and Planning is working according to the arrangements that can provide loans by making the necessary regulations and procedures.