Economy is sluggish but not in crisis: Finance Minister Pun

Finance Minister Barshaman Pun has stated that while the country’s economy is somewhat sluggish, it has not yet reached a crisis situation.

Addressing the 34th-anniversary program of the Citizen Investment Trust (CIT) today, he asserted that the economy is resilient and has shown significant improvement in the external sector.

However, Minister Pun acknowledged that some structural challenges persist in the public finance sector. He noted that the negative portrayal of the country’s economy being on the brink of collapse has affected market sentiment.

“We have foreign currency reserves sufficient to cover imports of goods and services for over a year. Remittance inflow is robust, and there is ample liquidity in banks and financial institutions. Investment is expected to increase gradually,” stated the Finance Minister.

He highlighted that the external sector is now stronger compared to earlier concerns about Nepal’s economy mirroring the situation in Sri Lanka. Minister Pun emphasized the importance of positive market sentiment and confidence for economic growth.

He assured that the government would continue with positive policies and plans from previous administrations, gradually easing strict policies implemented during economic downturns.

Discussions are underway with various ministries and agencies to implement these changes. The Finance Minister noted recent improvements in the stock market, which he believes will stimulate economic activity.

He stressed the responsibility of all parties and agencies in ensuring efficient service delivery, emphasizing the need for political and administrative reforms.

Minister Pun urged CIT management to invest deposits in productive sectors, large infrastructure projects, and employment generation, while enhancing professionalism.

CIT’s Executive Director, Parbat Kumar Karki, highlighted the organization’s role in national capital formation through savings mobilization. He outlined CIT’s expansion plans, profit-oriented investments, and risk management strategies.

Karki stated that CIT is increasing investments in government-prioritized infrastructure sectors and enhancing technological capabilities for better service delivery. Additionally, efforts are underway to involve citizens working abroad in CIT programs.

As of mid-January of the current fiscal year, CIT’s net reserves stand at Rs 240 billion and 510 million, with investments totaling Rs 235 billion and 50 million during this period.