Govt unveils plans to revitalize economy

The government has announced its plan to take decisive steps to revitalize the country's economy. Presenting the budget for the upcoming fiscal year at the joint session of the Federal Parliament, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said the government aims to enhance Nepal's economic credibility by removing the country from the money laundering risk watchlist ahead of schedule.

KATHMANDU, May 30: The government has announced its plan to take decisive steps to revitalize the country's economy. Presenting the budget for the upcoming fiscal year at the joint session of the Federal Parliament, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said the government aims to enhance Nepal's economic credibility by removing the country from the money laundering risk watchlist ahead of schedule.

He also outlined plans to push forward additional economic reforms to secure a higher credit rating. The government plans to use the encouraging results from Nepal's first sovereign credit rating to mobilize foreign capital.

Highlighting the boost in private sector confidence following recent legal reforms introduced through ordinances, he said the government will channel public investment into high-yield sectors. This strategy aims to attract private capital and technology, driving qualitative growth in economic activities.

The budget seeks to position the private sector as a key engine of economic prosperity. The government will introduce more policy, legal, and procedural reforms in high-impact sectors and begin implementing recommendations from the High-Level Economic Reform Suggestion Commission 2081 (2024 AD).

To meet the Sustainable Development Goals (SDGs) by 2030 and address potential investment shortfalls following Nepal's graduation to developing country status in 2026, the government will diversify its funding sources, professionalize revenue administration, and strengthen the revenue system. It will direct public debt towards high-return projects, cut ineffective ones, and prioritize high-impact and result-oriented initiatives. The government also plans to use alternative and innovative financing tools to bridge development financing gaps.

The budget prioritizes improving the trade balance by boosting exports of competitive goods and services and promoting domestic production of essential goods. It also encourages skilled Nepalis working abroad to return and pursue entrepreneurship and self-employment. The government will promote innovation and entrepreneurship to create youth-centered job opportunities.

"We are determined to build on our recent achievements, bring meaningful change to people's lives, overcome despair, and restore public confidence," the Finance Minister said.

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