Economic indicators gradually improving: PM Dahal

KATHMANDU, MARCH 13: Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has today expressed optimism about the country’s economic indicators, attributing the positive trajectory to consistent efforts. In a statement made prior to seeking a vote of confidence in the House of Representatives, he highlighted several improvements in the economy.

Dahal mentioned that the balance of payment has shown a surplus of 297 billion and 720 million in the first seven months of the current fiscal year. Additionally, the foreign exchange reserve has increased by 19.9 percent, reaching nearly Rs 1 trillion and 845 billion, while the trade deficit has been reduced by 1.8 percent. Inflation has been limited to 5.1 percent during this period, and there has been a 4.7 percent increase in loan disbursement.

However, he also acknowledged that despite these achievements, progress in domestic production and employment generation has not met expectations. Capital expenditure has not increased as anticipated, and there is a need to prioritize projects of national pride and priority to improve capital expenditure and public service delivery.

The Prime Minister emphasized the importance of making the administration mechanism efficient, removing procedural obstacles, and creating a conducive environment for fully utilizing the capacity of the private sector as his top priority.

Furthermore, Dahal announced plans for a tri-nation electricity trade agreement, allowing Nepal to export up to 40 megawatts of power to Bangladesh. He also noted progress in electricity trade discussions with India and China, highlighting the need for significant infrastructure development in the energy sector.

Regarding Nepal’s global presence in climate justice, Dahal mentioned the country’s participation in COP-28 and the visit of UN Secretary-General Antonio Guterres, signalling Nepal’s leadership role in advocating for mountain nations affected by climate change.

While acknowledging the government’s achievements, Dahal emphasized that they were not sufficient to meet the country’s needs and potential, indicating the need for further progress and development.

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