Economic sector sees discernible progress, says DPM Paudel

KATHMANDU: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, has said the government’s first year in office was productive.

To mark one year since assuming office, Minister Paudel said the government’s formative period progressed well in economic, social, cultural and educational areas.

“The incumbent government has made a sea change in policy to create an investment-friendly environment. Reform of the legal framework has also gained momentum,” he said.

The government has introduced several legislative acts, including the Economic Procedure and Financial Responsibility (First Amendment) Act 2081, the Act to Amend Some Nepalese Laws Related to Improving the Economic and Business Environment and Enhancing Investment, the Privatisation (First Amendment) Act 2081, the Customs Revenue Act 2081, the Banking Crimes and Punishment Act 2082, and the Customs Act 2081.

Other laws introduced include the Appropriation Act 2082, the Act to Raise National Debt 2082, the Finance Act 2082, and the Alternative Development Finance Operational Bill 2081, tabled in the House of Representatives. Additionally, the Internal Revenue Operational Strategy 2081, the Standards for Making Public Expenditure Economic and Effective 2081, and the Foreign Aid Operational Policy 2082 have been announced.

Minister Paudel acknowledged challenges in the economy, notably revenue collection below targets, low capital expenditure and the need to exit the grey list.

He said the Ministry of Finance has formed a high-level economic reforms recommendation commission and begun implementing its report.

DPM Paudel reported a rise in grievances and demands from the private sector.

Regarding economic growth, he said liabilities exceeding Rs 30 billion from the previous fiscal year have been cleared. The current fiscal year has a projected growth rate of 4.61%, up from 3.87% the previous year.

He said the multi-year contract process has become more organised and execution-friendly, and the size of the economy has increased by Rs 4 trillion.

“Revenue growth has reached Rs 197 billion; remittances have increased by 15.5%, rising from Rs 1,327 billion last year to Rs 1,532 billion,” the finance minister said.