Former Finance Minister Khatiwada stresses need for loan mobilisation in upcoming budget

KATHMANDU: Former Finance Minister Dr Yuba Raj Khatiwada has expressed confidence that Nepal is regaining economic momentum and could graduate from a least developed nation to a middle-income country if this trend continues.

Speaking at the "Pre-Budget Interaction" programme organised by IBN Media and Research, Prime Minister’s Economic and Development Advisor Dr Khatiwada stated, "All economic indicators are positive. To achieve Nepal’s growth target, we need to mobilise the economy through loans in the upcoming budget." He emphasised that securing domestic loans is necessary to achieve an economic growth rate above 5%, adding, "Merely identifying sectors is not enough—we must take loans for concrete projects."

The former Finance Minister mentioned that the government has prioritised information technology and is preparing a startup programme targeting Generation Z. "This initiative will create employment and boost income generation through entrepreneurship," he said. He also highlighted inefficiencies in public spending, stating, "More is spent on software purchases for government systems than on foreign visits."

Responding to concerns about delays in implementing government commission reports, he asserted that some reports were incomplete and required further study before phased implementation. He mentioned that the government plans to gradually act on recommendations from Economic Reform Commission and the Public Expenditure Review Commission.

At the programme, Associate Professor at the Central Department of Economics, Tribhuvan University, Dr Resham Thapa, presented a paper on the upcoming budget for fiscal year 2025/26. He stressed the need for swift appointment of Nepal Rastra Bank’s governor. His report indicated that while Nepal’s economy appears weak externally, statistical trends show improvement.

On the occasion, Director General of the Federation of Chambers of Commerce and Industry (FNCCI), Gokarna Raj Awasthi, commended "Arthako Artha" for its role in documenting Nepal’s economic progress over 31 years. Other economists and policymakers, including Keshav Acharya, Dr Shaligram Parajuli, and Dr Bhoj Raj Ghimire, participated in discussions on governance, budget challenges, and economic policy.

IBN Media and Research Managing Director Hriday Raj Gautam expressed hope that this year’s budget discussion, like previous ones, would assist the government in shaping its upcoming economic policies. The event also marked the release of "Arthako Artha’s" 32nd anniversary souvenir.