Microfinance institutions have urged the government to implement self-reliant programmes through microfinance to reach to the poor.

“People will get direct benefit from self-reliant programmes, if it is implemented through microfinance institutions,” chief executive officer of Rural Microfinance Development Centre Shankar Man Shrestha, said.

Microfinance can help empowerment programmes to the poor because of their network in remote villages and years long experiences. “Therefore, he said, adding that government should implement self-reliant and pro-poor programmes through microfinance institutions.” “It will definitely give better results in retaining youth in villages and increasing productivity of agriculture and industrial sector,” Shrestha said, adding that retaining youths in villages is a major challenge to the government these days at a time when above 3,00,000 youth are joining overseas jobs annually. The uncontrolled migration has reduced agriculture productivity in the country and 43 districts are under the shadow of food deficit. Likewise, It has also hampered growth of industrial and service sector due to shortage of manpower and technical know-how.

The government has, however, assured to mobilise microfinance institutions in self-reliant programmes targetting the youth and poor. “I will do my best to mobilise self-reliant fund through microfinance institutions,” finance minister Bharat Mohan Adhikari said, adding that the government is introducing special package to women entrepreneurs in the next budget. The government has over Rs 5 billion in the Self-employment Fund collected from banks but failed to invest atleast one per cent on youth-focused self-employment projects.

Nepal Rastra Bank, has been mobilising deprived sector loan through microfinance institutions, as banks are also reluctant to invest on poor living in remote areas. “Government should start youth-focused self-employment through microfinance institutions because they have expertise,” said deputy governor of the central bank Gopal Prasad Kafle.

According to him, the development is only possible through hydropower and microfinance development. “We have absolute poverty in remote villages, so there is no option to microfinance institutions.

Published on: 20 June 2011 | The Himalayan Times