Achieving economic growth rate of 4.01 percent challenging this fiscal: Finance Minister

KATHMANDU: Finance Minister Bishnu Prasad Poudel has said that it will be difficult to meet the target of economic growth in the current fiscal year.

Announcing the Economic Survey 2020/21 at a press meet held Friday, the Finance Minister attributed the situation to the impact of COVID-19 on the economy. Nepal’s economic growth rate was -2.12 percent in 2019/20.

According to Finance Minister Poudel, it has become challenging to achieve the projected economic growth rate of 4.01 in the current fiscal.

Earlier, the Central Bureau of Statistics had projected 4.01 percent economic growth for the current fiscal year. Likewise, the budget had also projected economic growth of an average of 7 percent.

Finance Secretary Shishir Kumar Dhungana informed that the growth rate of the economy was better before the prohibitory order came into effect. He was of the view that prohibitory orders enforced to contain the coronavirus spread was taking their toll on economic growth.

“In the mid-term review, we expected an economic growth of around 5 percent, but the prohibitory ban has caused problems,” he said.