Economic indicators gradually improving: PM Dahal

Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has stated that the country’s economic indicators are showing positive progress due to consistent efforts. Making a statement before seeking a vote of confidence in the House of Representatives today, he mentioned his continuous efforts since the beginning to improve the economy. He clarified that most economic indicators have improved in the current situation.

“The balance of payment reserves have increased by 297 billion and 720 million in the seven-month period of the current fiscal year. The foreign exchange reserve has grown by 19.9 percent, reaching nearly equivalent to Rs 1 trillion and 845 billion,” the PM stated, adding that the trade deficit has reduced by 1.8 percent. He further mentioned that inflation has been limited to 5.1 percent in the seven-month period, and loan disbursement has increased by 4.7 percent.

“It is undeniable that the government has made progress in interpreting the existing economic conditions as a significant achievement. However, there has been a shortfall in domestic production and employment generation as expected. Similarly, capital expenditure has not increased as anticipated. It is crucial to provide additional impetus to national pride and priority projects, increase capital expenditure, and further enhance public service delivery,” the PM pointed out.

He emphasized that his first priority is to make the administrative mechanism more efficient, remove procedural obstacles, and create an environment conducive to fully utilizing the private sector’s capacity.

“We are on the verge of finalizing a power trade agreement with Bangladesh,” announced Prime Minister Dahal, indicating that a tri-nation electricity trade agreement would be signed for exporting up to 40 megawatts of power from Nepal to Bangladesh. He affirmed that Nepal is close to achieving electricity trade not only with India but also with Bangladesh. “The door for electricity trade is also opening towards China. This is a significant achievement, but substantial work in electricity infrastructure development is required to realize this potential,” the PM observed.

Highlighting Nepal’s presence on the world stage regarding climate justice and equality, he mentioned the visit of UN Secretary-General Antonio Guterres to Nepal and Nepal’s participation in COP-28 in Dubai, UAE, which have strengthened Nepal’s position. “We have conveyed the message that Nepal will now lead the voice of mountain nations affected by the climate crisis,” he said, acknowledging that while the government has achieved notable milestones, these achievements are insufficient to meet the country’s needs and potential.