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Nepal’s Economic Indicators Pessimistic: White Paper

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Nepal’s Economic Indicators Pessimistic: White Paper
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April 1: Finance Minister Dr Yuba Raj Khatiwada has issued a white paper stating that the economy of the country is very challenging. The white paper issued on March 30 states that internal and foreign capital are necessary for the economic development of the country. Khatiwada said that the government is committed to make improvement in policy and management level.

The white paper further says that the government has not been able to create an environment to attract foreign direct investment (FDI) in the country.

“The environment for investment is not attractive. We have to make an effort to discourage money laundering,” Minister Khatiwada read out a statement from the white paper. 

Khatiwada also gave a hint that he would adopt strict measures in revenue collection arguing that the flourishing informal economy has limited revenue collection. He said that the government will adopt austerity measures since the announcement of budget.

The Macro Economic Report of Nepal Ratsra Bank (NRB) for the last seven months shows that most of the economic indicators are pessimistic. The report has mentioned rise in inflation, increasing trade deficit and deficit in balance of payment.                 

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