4. Problems and challenges

Though many efforts have been made in the past for the development of the cooperative sector, the expected achievements have not been achieved. As the national cooperative policy could not be formulated, there was a lack of a clear roadmap for the multifaceted development of the cooperative sector. Due to the lack of timely amendments in the current Cooperative Act, it has not been possible to bring effectiveness in the activities related to the registration, operation, monitoring and regulation of cooperative associations. Due to the ineffectiveness of the current arrangements for the practice of self-regulation, it has not been possible to ensure good governance in cooperatives. Due to the lack of a clear legal arrangement for cooperatives and cooperative banks that conduct financial transactions, it has become difficult to make the financial transactions through cooperatives organized, safe and reliable. Appropriate development of formal cooperative education, training and systematic cooperative information system required for the promotion of cooperatives in the country is yet to take place. There is a need for policy clarity on the benefits of grants, loans and tax exemptions given to the cooperative sector. If the contribution of cooperatives in the productive sectors cannot be increased, an environment conducive to self-employment cannot be created, the process of migration of labor force and talents cannot be minimized. Due to the lack of sectoral policies and programs, the cooperative system has not been used in comparative advantage industries. The institutional strengthening of the cooperative department, which has the administrative responsibility for the development and expansion of the cooperative sector, has not been done. Even now, since cooperative offices have not been established in 37 districts, it is difficult for the people of those areas to receive state-provided services related to cooperatives. Associations at various levels of cooperatives are unable to play an effective role in the development, management and promotion of the cooperative sector.