Himal Press 
KATHMANDU: Former President of the Asian Development Bank (ADB), Haruhiko Kuroda, has said that Nepal can strengthen its economy through the mobilization of its human capital and the maximum utilization of natural resources.
Sepaking at a press meet in Kathmandu on Friday, Kuroda, who is also a former governor of the Central Bank of Japan, underscored the need to identify areas for economic prosperity, suggesting that Nepal’s youthful workforce should be connected to production processes that utilize natural resources. “Nepal can benefit environmentally through the mobilization of human capital and the utilization of natural resources such as water and forests. Nepal should not lag behind in fully exploiting these resources,” he said.
He also highlighted the need for Nepal’s youth to be integrated into various sectors of production to harness their potential. Kuroda also stressed the importance of infrastructure development, including roads, transmission lines, and communication networks, to expand the economy.
The former ADB president also cautioned against underestimating Nepal’s growing public debt. “The rising public debt, driven by a constrained economic growth rate, low returns from investments, and weak capital formation, could pose challenges for Nepal,” Kuroda said, pointing out that the increasing ratio of public debt to GDP and a substantial portion of the annual budget being allocated to servicing the principal and interest of public debt could have long-term economic impacts.
While Japan has a high level of public debt relative to GDP, Kuroda argued that Japan’s situation is not problematic due to its strong capital formation, returns from investments, and a credible environment for investors.
He also suggested that the central bank’s tight monetary policy has contributed to liquidity problems and low demand for loans.
