Kathmandu – Claiming early signs of an economic turnaround the Nepal Government on Wednesday said a series of reforms introduced during its first 100 days in office have boosted revenue collection, strengthened private sector confidence and improved key economic indicators.
The administration led by the Rastriya Swatantra Party claims it has improved the investment climate by initiating the repeal of more than a dozen outdated laws and reforming tax policies. Finance Minister Dr. Swarnim Wagle, who assumed office on Chaitra 13 has pledged to drive economic recovery through governance reforms and investment-friendly policies.
A key pillar of the government’s economic strategy is its ambitious target of expanding Nepal’s economy to Rs 100 trillion equivalent to more than USD 100 billion within five to seven years. The plan prioritizes energy, tourism, information technology, agriculture, infrastructure and institutional reforms while the recently unveiled budget targets annual economic growth of at least 7 percent.
Backed by two-third public mandate the government has also introduced a series of administrative reforms including online delivery of public services, an e-Pension Verification System for more than 3,50,000 pensioners and a pilot scheme under which federal civil servants receive salaries every 15 days to boost consumer spending and market liquidity.
The Rs 2.114 trillion budget for the upcoming fiscal year aims to expand the middle class through tax relief infrastructure investment and support for businesses. Income tax thresholds have been increased while the maximum personal income tax rate has been reduced.
According to the government, economic indicators have also improved. Remittance inflows reached Rs 1.92 trillion during the first ten months of the current fiscal year foreign exchange reserves climbed to Rs 3.70 trillion and both the current account and balance of payments remained in surplus.
The government has further announced fuel allowance cuts for senior officials expanded digital tax administration and intensified efforts to attract foreign investment describing the measures as part of a broader push to strengthen governance, restore economic confidence and accelerate long-term growth.
