Finance Minister optimistic as Nepal’s economy shows signs of recovery

KATHMANDU: Finance Minister Barshaman Pun expressed confidence in the country’s economic trajectory, noting positive signs emerging from a recent slowdown.

Speaking at a workshop on ‘financial policy for sustainable development,’ Minister Pun emphasized the government’s target of achieving a 4.5 percent economic growth rate.

Acknowledging that the economy hasn’t fully rebounded, Minister Pun pointed to various factors, both domestic and international, influencing the situation.

He highlighted gradual improvements in economic indicators, referencing projections from entities like the World Bank, Asian Development Bank (ADB), and the National Statistics Office (NSO) based on nine-month data.

The government’s optimistic growth forecast of over 4.5 percent accounts for the final three months of the fiscal year.

Minister Pun outlined the government’s approach to policy-making, considering market dynamics in neighboring countries such as India and China, along with global socio-political conditions, labor markets, natural resources, and geopolitics.

Despite an overall economic slowdown, certain sectors like hospitality and tourism recorded significant growth of 21 percent, while energy saw a 17 percent increase. However, the construction sector faced challenges with negative growth.

Addressing concerns about political instability affecting development projects, Minister Pun highlighted energy policy initiatives aimed at facilitating energy exports to neighboring countries like India and Bangladesh.

He refuted claims linking slow development to political instability and reiterated the government’s commitment to promoting economic growth and stability.