Nepal poised to post 4.5 percent economic growth: FinMin

KATHMANDU, MAY 1: Finance Minister Barsha Man Pun has asserted that the country’s economy is gradually emerging from a slowdown, citing positive indicators and expressing confidence in achieving a 4.5 percent economic growth rate.

Speaking at a workshop on ‘financial policy for sustainable development,’ Minister Pun highlighted the recent progress in the national economy. While acknowledging the National Statistics Office’s projection of a 3.54 percent economic growth rate, he emphasized that the government is optimistic about surpassing this figure.

Minister Pun acknowledged the challenges faced by the economy, attributing them to both internal and external factors. However, he noted a gradual improvement reflected in recent statistics. Despite the ongoing challenges, the government has set a target of over 4.5 percent economic growth for the fiscal year, considering the remaining three months.

He also mentioned that the government’s policy formulation is influenced by the market dynamics of neighboring countries like India and China, as well as global socio-political scenarios, labor markets, national resources, and geopolitics.

While some sectors like the hotel and tourism industry experienced significant growth, with a 21 percent increase, and the energy sector recorded a 17 percent growth rate, the construction sector faced negative growth, according to Minister Pun.

Addressing concerns about political instability affecting development, Minister Pun emphasized that the government’s energy policy has facilitated an environment conducive to energy exports to India and Bangladesh. He expressed determination to overcome challenges and drive economic growth forward.