Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Finance Minister Rameshwar Prasad Khanal has stressed that tighter coordination among state agencies is essential to make Nepal’s fight against revenue leakage more effective, warning that weak enforcement and fragmented oversight continue to undermine revenue mobilisation.
Addressing a high-level meeting of the Central Revenue Leakage Control Committee at the headquarters of Nepal Police, Khanal said efforts toward systemic reform must now move from policy commitments to strict implementation. He urged all responsible institutions to act within their jurisdiction to both prevent leakage and expand the revenue base, noting that enforcement gaps remain a major structural challenge.
Khanal emphasised that improving compliance, strengthening monitoring systems, and enhancing institutional accountability are critical at a time when the government is under pressure to increase domestic revenue and reduce fiscal stress. He said coordinated action between enforcement bodies, customs authorities, tax administration, and provincial structures would be decisive in curbing illegal trade and under-reporting.
Inspector General of Police Dan Bahadur Karki described revenue leakage as not only an economic issue but one directly tied to national security, governance standards, and long-term prosperity. He said the police organisation has been actively engaged in controlling smuggling networks and financial irregularities within its institutional capacity.
Karki added that sustained results will depend on strategic support in technology deployment, manpower strengthening, legal reforms, and cross-agency intelligence sharing. Without such backing, enforcement operations alone cannot deliver durable outcomes, he warned.
During the meeting, Deputy Inspector General Bishwo Adhikari presented on the role of police in tackling smuggling and revenue leakage, while Joint Secretary Uttarkumar Khatri from the Ministry of Finance Nepal delivered a briefing on revenue mobilisation trends, structural risks, and policy responses.
Officials from all seven provincial police offices, along with chiefs from key district police offices including Morang, Bara, Chitwan, Banke, and Kailali, joined the discussion virtually. Participants reviewed ongoing enforcement measures, intelligence coordination, and operational challenges in border and high-risk trade corridors.
The discussion comes as Nepal’s fiscal authorities face mounting pressure to strengthen domestic resource mobilisation amid rising public expenditure needs and slowing revenue growth, making leakage control a central policy priority.
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