KATHMANDU: Nepal’s economy is on a recovery path, with significant improvements in several key areas, according to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel. In an interview with the National News Agency Nepal, Paudel detailed the steps taken by the Finance Ministry over the past four months to address economic challenges and stimulate growth.
According to National News Agency Nepal, Paudel highlighted the implementation of a 100-day action plan, which included forming a High-Level Economic Sector Reform Recommendation Commission and passing several key regulations. These efforts, he noted, have contributed to increased private sector confidence and a more favorable investment climate. The Finance Ministry has also made strides in policy areas such as insurance, customs, taxation, and revenue mobilization, while introducing technological advancements at customs points to streamline processes.
Paudel acknowledged ongoing challenges, including outstanding payments to construction entrepr
eneurs and issues related to revenue collection and capital expenditure. However, he reported improvements in foreign currency reserves, remittance inflows, and the liquidity situation in banks. The revenue growth rate has increased, and foreign aid mobilization is on a positive trajectory. Capital expenditure has risen by four billion compared to the same period last year, and efforts to re-operate closed industries are underway.
The World Bank projects Nepal’s economic growth rate to reach 5.1 percent this year, up from 3.9 percent last year. Paudel expressed optimism about Nepal’s progress towards graduating from a least-developed country to a developing one by 2026, citing a favorable sovereign country rating by Fitch Ratings.
On the political front, Paudel addressed concerns about the stability of the coalition government formed by the Nepali Congress and CPN (UML). He emphasized that the alliance aims to achieve political stability, development, and social justice, and expressed confidence in its cont
inuity until the next general elections. Paudel also described Prime Minister KP Sharma Oli’s recent visit to China as a success, with significant agreements reached to bolster Nepal’s economic development.
Regarding internal party dynamics, Paudel dismissed rumors of a deepening intra-party rift within CPN (UML), affirming the party’s unity and confidence in KP Sharma Oli’s leadership. He indicated that Oli is expected to remain the party chairman through the 11th General Convention, highlighting his capability and contributions to both the party and the nation.