Finance Minister Pun Optimistic About Economic Recovery, Targets 4.5 Percent Growth

Finance Minister Barshaman Pun expressed confidence in the improving state of the country's economy, stating that positive indicators were emerging from a period of slowdown. Addressing a workshop on 'financial policy for sustainable development,' Minister Pun highlighted the government's aim to achieve a 4.5 percent economic growth rate.

While acknowledging that the economy has not yet fully recovered from the slowdown, Minister Pun cited both internal and external factors contributing to the situation. He noted gradual improvements in economic statistics, emphasizing that projections from international organizations such as the World Bank, Asian Development Bank (ADB), and the National Statistics Office (NSO) were based on nine-month data. The government's optimistic growth projection of over 4.5 percent takes into account the remaining three months of the current fiscal year.

Minister Pun elaborated on the government's policy formulation process, which considers market dynamics in emerging neighboring countries like India and China, as well as global socio-political scenarios, labor markets, national resources, and geopolitics. Despite the overall economic slowdown, certain sectors such as hotel and tourism experienced a notable 21 percent growth, while the energy sector saw a 17 percent increase. However, the construction sector faced challenges with a negative growth rate.

Regarding concerns about political instability impacting development projects, Minister Pun highlighted the government's energy policy initiatives, creating an environment conducive to energy export to neighboring countries like India and Bangladesh. He dismissed claims attributing slow development to political instability and emphasized the government's commitment to fostering economic growth and stability.