KATHMANDU: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that the target of 8 percent economic growth rate set in the current financial year’s budget is unlikely to be materialized.

Speaking in the meeting of the House of Representatives on Sunday, Finance Minister Paudel submitted the half-yearly review of the current economic budget to the House of Representatives and opined that the budget’s target will not be met this time.

He said that although there has been some improvement in the tourism sector, the manufacturing industry does not seem to be able to run at its full capacity, so the economic growth is not according to the target, and the target of 8 percent economic growth for the current financial year is expected to be met.

Finance Minister Paudel also said that the country’s economy is under extreme pressure due to the pressure on revenue collection, the impact of import regulation and the slowdown in supply. He said that the amount allocated for compulsory obligations by the revenue system is insufficient.

Paudel said that the current and long-term obligations of the government have added more pressure and the economic growth target set by the government are least likely to be achieved.

He further added that the strict policy seen in the world economy has added challenges to Nepal’s economic policy. The Finance Minister shared that the rice production will increase only slightly compared to last year.