KATHMANDU: Finance Minister Bishnu Prasad Paudel is under pressure as criticism grows over his handling of the economy.
Paudel, who is also the Deputy Prime Minister and a Vice-chair of CPN-UML, is tasked with addressing the country’s economic slowdown and promoting development as per the seven-point agreement between UML and Nepali Congress.
When Paudel took office in July, he promised to revive the economy, create jobs, and build confidence in the private sector. “We will study all economic problems in-depth, break the cycle of despair, and move forward with hope,” he had said. However, five months into his tenure, his performance is being questioned by lawmakers, even from his own party.
Intense criticism in Parliament
At a Finance Committee meeting on Wednesday, opposition lawmakers and members of Paudel’s UML party criticized his efforts.
Furthermore, the disappointing reporting on the economy by two secretaries from the ministry before a parliamentary committee further confirmed the Finance Minister’s poor performance.
Finance Secretary Dr. Ram Prasad Ghimire said, “Only 11.2% of the capital budget has been spent so far. Banks are not lending as expected, and the domestic economy remains stagnant.”
Revenue Secretary Dinesh Ghimire added, “We have only collected 76% of the revenue target. Smuggling and government policies have impacted revenue collection significantly.”
Revenue Secretary Ghimire also said that there has been no return on projects that have received huge state investment.
The government has so far been able to collect only about Rs 390 billion in revenue against a target of Rs 1.419 trillion.
UML MP Padam Giri accused customs offices of corruption and questioned the government’s control over revenue leaks. “Who is benefiting from this negligence? Why is the government ignoring these issues?” he asked.
Former Finance Minister Barshaman Pun from the opposition Maoist Centre pointed out the weakness of the Finance Minister and the government in not being able to gain the trust of investors and eliminate the slack in the economy.
He asked, “The tuning of the leadership from the Nepal Rastra Bank, the Securities Board of Nepal to the Insurance Authority is in line with the current government, but why did it not yield results? Why was there no investment? Why was the government unable to convince internal and external investors?”
Minister Paudel’s response
Responding to the criticism, Paudel acknowledged the economic problems but defended his efforts. “No one can deny the challenges in our economy, but these issues have not arisen overnight. We are making progress, but solutions will take time,” he said.
He highlighted some improvements in areas like reduced interest rates and better liquidity but admitted that investment in productive sectors remains weak. Regarding smuggling and irregularities at customs, Paudel said, “Illegal imports have become an organized channel. We are taking steps to break this and control revenue leaks.”
Despite his explanations, the criticism shows growing frustration over the government’s inability to address economic issues effectively. “We need more action, not just promises,” one lawmaker remarked.
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