Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Finance Minister Rameshwar Khanaal has said that the government has successfully restored public confidence and placed the country on a path of recovery and reconstruction within three months following the Gen-Z movement.
Speaking at a program organized in Kathmandu on Thursday to mark the 61st anniversary of The Rising Nepal, the English publication of Gorkhapatra Corporation, Finance Minister Khanaal said that contrary to widespread fears after the incidents of Bhadra 23 and 24, the government managed to stabilize the economy and accelerate reconstruction efforts within 90 days.
He said that in the immediate aftermath of the incidents, Nepal was widely perceived to have fallen into deep uncertainty, with expectations of economic collapse and severe hardship for citizens. However, he stressed that the government moved swiftly to reverse that narrative.
“Within a week after the incidents of Bhadra 23 and 24, there was a strong perception that Nepal had fallen into an uncertainty trap, that the economy would collapse and citizens would face severe distress,” Khanaal said. “But within just 90 days, we have moved forward at a rapid pace on the path of recovery, reconstruction, and renewed hope.”
The finance minister stated that increased imports of raw materials indicate a revival of production activities across the country. According to him, import data clearly shows that industrial and manufacturing operations are regaining momentum.
Highlighting revenue performance, Khanaal said that despite a slight decline in the month of Bhadra, tax revenue collection has grown by around 10 percent during the subsequent months of Ashoj, Kartik, and Mangsir, up to the current date in Poush.
He noted that key indicators of economic activity—such as value-added tax (VAT), excise duty, and customs revenue—reflect whether production, consumption, and overall economic confidence are improving.
“Imports of raw materials show that production activities have picked up,” he said. “Imports of consumer goods and intermediate goods indicate growth in consumption and output. Over the past three months, despite a minor decline in Bhadra, VAT, excise duty, and customs revenue have all increased by nearly 10 percent.”
Finance Minister Khanaal added that the combined improvement in revenue collection and import trends demonstrates that Nepal’s economy is gradually returning to normalcy and regaining momentum following the period of uncertainty.
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