Economy facing pressure: FM Paudel

Kathmandu, December 11 — Finance Minister Bishnu Paudel stated that the country's economy is currently facing problems and pressure.

Responding to questions raised by MPs during a discussion in the Parliamentary Finance Committee on Wednesday, he mentioned that efforts are gradually underway to address these economic challenges.

"Among the overall economic indicators, some are improving. The stock market, for example, has become more dynamic. However, you're not satisfied, and I'm not satisfied either," Minister Paudel said. "There has been a notable improvement in revenue mobilization compared to last year. It was at 3% last year, and it has now reached 17%."

He also mentioned that the government is making efforts to prevent revenue leakage, although not all attempts have been successful. "Currently, we need a 30-31% increase in revenue to meet our targets. I am working hard to achieve that," he added. "Only when we meet this target can the budget be balanced."

The minister explained that illegal imports, bypassing legal channels, have caused issues in revenue collection. To address this, the government is taking steps to curb irregularities in revenue leakage.

Paudel also noted the recent reduction in interest rates and increased liquidity, but pointed out that investments have not yet picked up. He stressed that efforts are underway to encourage investment in production and productivity sectors.

"There is also a push for effective regulation by the regulatory bodies," he said. "Regarding the stock market, the government is focused on ensuring that investors' investments are not at risk and on the sustainable management of the market."