Kathmandu: Various stakeholders have stressed the need to transform the score Nepal received from Sovereign Credit Rating for the first time into an opportunity. At an interaction on ‘Managing the Economy’ organized on the occasion of the 28th anniversary of the Society of Economic Journalists of Nepal (SEJON) in Kathmandu today, the stakeholders related to the economic sector said Nepal has achieved a ‘double B-minus’ score from the sovereign credit rating which is encouraging to reap benefits.
According to National News Agency Nepal, Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel stated it was a matter of pride for Nepal to achieve second rank in South Asia after India. He emphasized the necessity to transform potentials into tangible results and assured, “I will take responsibility if problems have been added to the economy since the formation of this government.”
National Planning Commission Vice-Chair Prof Dr Shivaraj Adhikari highlighted that the country’s sovereign credentials have i
nitiated a positive debate, suggesting that the next focus should be on reforms. He pointed out that although economic debates have persisted for years, the current situation is distinct due to reduced interest rates, ample liquidity, and governmental efforts to promote the private sector.
Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari acknowledged that while the credit rating positions Nepal second in South Asia regarding the overall economic situation, challenges remain. He emphasized the need for efforts to improve the current sovereign credit rating and noted that no policy changes were made in the first quarter review of the monetary policy because the economic and financial situation remains unchanged.
Adhikari further argued that economic improvement cannot rely solely on monetary policy and stated, “All state agencies have an equal role to play in addressing the current crisis. The dependence on monetary policy should be reduced.”
Economist Prof Dr Achyut Wagle expressed concern over the lac
k of new revenue sources, which has weakened the state’s financial position. He noted a significant drop in revenue collection from 24-25 percent of GDP to 12-13 percent and questioned the reasons behind the non-collection of revenue. Wagle warned that increasing public debt due to revenue shortfalls could lead to further crises, projecting that public debt could reach 60 to 65 percent of GDP in the coming years, attributing these issues to inadequate financial management.