KATHMANDU: Governor of Nepal Rastra Bank, Maha Prasad Adhikari, has affirmed that taking economic growth rate to 7 percent and keeping inflation within 6.5 percent in the current fiscal year is challenging in this fiscal year.

Commenting on the current economic situation in the Public Accounts Committee of the parliament on Sunday, he said that there is much to be done to meet the target set for the fiscal year and its not easy.

Governor Adhikari remarked that the challenge was compounded by the decline in paddy production and the coronavirus pandemic impact in the service sector.

He added that there is a challenge to maintain the target of keeping inflation within 6.5 percent in the current fiscal year. The Governor said that there were both internal and external reasons for this.

He expressed satisfaction that the liquidity situation has eased somewhat this year. Stating that the challenge in the economy is the pressure from the external sector, Governor Adhikari said that the main reason for this pressure is increase in the imports.