Election to majority govt against 5-point pact: PM Khanal

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KATHMANDU: Prime Minister Jhala Nath Khanal has said holding election for the majority government after his resignation was almost against the five-point pact.

Speaking at a Real Estate Expo-2011 organised by Nepal Real Estate Developers’ Association in the capital on Thursday, Prime Minister Khanal stressed the need of forming consensus government.

He urged the political parties to utilise the situation after he resigned from the post paving the way to move ahead for a political outlet.

It is time to act on moral ground rather than fulfilling partisan interests, he cautioned.

Prime Minister Khanal said the private and government sectors should make concerted efforts to develop housing and real estate as the government, in the budget, has aimed at establishing big cities in the country.

Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari said the real estate entrepreneurs could play significant role to build systematic housing in the urban areas. The real estate business should be made scientific and systematic, he stressed. Minister for Land Reform and Management Hishila Yami informed media that the government was mulling on bringing land-use policy because Nepal was facing haphazard urbanisation.

Governor of Nepal Rastra Bank, Dr Yuv Raj Khatiwada suggested those investing in real estate to take loan complying with their capacity to pay it back.

As many entrepreneurs in the real estate serctor turned defaulters, the NRB resorted to fixing ceiling on loans, he added.

The real estate entrepreneurs are running business for quick profit after the NRB formulated the monetary policy, fixing ceiling on the investment on real estate at 25 per cent.

Association Chairman Ichchha Raj Tamang expressed happiness over relaxing the stringent policy on housing industry through the budget. He hoped that the housing industry would flourish in cooperation between the government and private sectors.

Although there was the need of 16,000 housing projects in Nepal at present, only three per cent of the demand was met, he added.

The Expo to run for three days is expected to draw 50,000 visitors.