Stakeholders have emphasized the need to leverage Nepal's first-ever sovereign credit rating to create opportunities for economic growth.

During an interaction on "Managing the Economy," organized to mark the 28th anniversary of the Society of Economic Journalists of Nepal (SEJON) in Kathmandu on Saturday, participants expressed optimism about Nepal's 'BB-' rating. They highlighted its potential to benefit the economy while calling for strategic actions to achieve tangible results.

Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel noted that Nepal's ranking, second in South Asia after India, is a matter of pride. "We must convert potential into outcomes. I take responsibility if the economy has worsened under this government," he asserted.

National Planning Commission Vice-Chair Prof. Dr. Shivaraj Adhikari emphasized that Nepal's sovereign credentials have sparked constructive debate. He called for the next steps to focus on structural reforms. "We have discussed similar economic issues for 5-6 years, but the current context is different," he said, pointing to reduced interest rates, ample liquidity, and government initiatives to promote private sector growth.

Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari acknowledged that Nepal’s credit rating positions it second in South Asia regarding the overall economic situation but cautioned that challenges remain. He stressed the need to improve the credit rating and explained that no policy changes were introduced in the first-quarter review of monetary policy, as the financial situation remains largely unchanged.

"Economic improvement cannot rely solely on monetary policy. All state agencies must share responsibility for addressing the crisis," he added.

Economist Prof. Dr. Achyut Wagle highlighted the state’s failure to find new revenue sources, which has weakened fiscal stability. He noted that the revenue collection trend has dropped from 24-25% of GDP to 12-13%, resulting in increased public debt. He warned that public debt could rise to 60-65% of GDP in the coming years, attributing the issue to poor financial management.

Stakeholders collectively underscored the urgency of addressing these challenges to capitalize on Nepal's credit rating and bolster the economy. -- RSS