Nepal's Economic Growth and Investment Outlook.

Nepal’s Finance Minister, Bishnu Prasad Paudel, emphasized the country’s improving economic indicators and favorable investment environment. He highlighted that the political stability brought by the coalition government, involving the Nepali Congress and CPN (UML), has played a key role in boosting investor confidence. Paudel pointed out that factors such as increased remittances, rising tourism, and growth in electricity exports have contributed positively to the nation’s economy. He also underscored the government’s efforts to create an environment conducive to private sector investment, infrastructure development, and human resource growth.

Addressing fiscal challenges, Paudel acknowledged concerns about public debt and the contracting capital expenditure due to increased social security commitments and rising debt costs. However, he assured that the government is taking steps to prioritize the quality of projects and streamline public finance management. The Finance Minister emphasized the importance of diversifying exports and strengthening the external sector for long-term economic stability. He also highlighted the role of development partners in supporting Nepal's fiscal and economic management, urging collaboration to ensure sustainable financial mobilization and address key issues like climate change adaptation. Development partners expressed their willingness to support Nepal’s economic development, citing the positive impact of the country’s improved credit rating on foreign investment.