Govt gearing up to host int’l investment summit in April 2024

KATHMANDU: In a bid to address the persistent economic crisis, the government is gearing up to host an International Investment Summit in the third week of April 2024.

A proposal outlining the summit has been presented to the cabinet for consideration.

It should be noted that Minister for Finance Dr. Prakash Sharan Mahat provided insights into the economic state of the country during a meeting on Monday called by Prime Minister Pushpa Kamal Dahal Prachanda.

The internal economic indexes continue to reflect a crisis, marked by the insufficient implementation of government policies, programs, and budgets, as well as low capital expenditure.

As of the second week of November, the government’s spending is Rs 355.63 billion-plus, with only 20 percent of the annual target achieved in the first quarter of the current fiscal year.

The revenue collection status also presents a challenging scenario, with only 20.08 percent of the annual target achieved in the first quarter.

The government aims to collect Rs 1422.54 billion in revenue for the current fiscal year, but the collection stands at only Rs 276.64 billion till November 17.

Additionally, inflation in the country has reached 7.5 per cent in the first quarter, exceeding the government’s target of maintaining it within 6.5 per cent.

Despite these challenges, the external sector of the economy has shown signs of improvement, marked by a robust 30 per cent growth in remittance inflow till November 17.

During the first three months of the current fiscal year, Nepal received Rs 365.34 billion in remittances, a 30 per cent increase compared to the same period last fiscal year.

Moreover, the balance of payment is in surplus at Rs 99.7 billion, with a 1.7 per cent increase in imports and a 2.3 per cent reduction in exports during the first quarter.

In light of these circumstances, the government believes that hosting the International Investment Summit in April 2024 will provide a platform to attract foreign investments and foster economic growth.

The summit aims to be a crucial step in steering the nation towards financial stability and prosperity.