The Ministry of Finance has reported significant improvements in both imports and exports during the first six months of the current fiscal year (FY 2024/25). According to the ministry, imports rose by 7.1% to reach Rs 822.37 billion, while exports surged by 31.8%, totaling Rs 98.79 billion as of mid-January 2025. In comparison, during the same period last year, imports had decreased by 3.1%, and exports had declined by 7.2%. Last year's figures stood at Rs 768.17 billion for imports and Rs 74.97 billion for exports.

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel attributed the positive trends in trade to the government's policies and claimed that economic indicators have been improving since the current administration took office.

Speaking at a press conference held at the Ministry of Finance on Sunday, Paudel said, “The indicators themselves show that the economy is improving. The facts reflect progress.” He added that reversing the previously negative economic trends required significant effort and time.

Construction Sector Challenges Persist

Despite improvements in trade, the country's economic growth rate remains moderate. The National Statistics Office has projected overall economic growth of 3.4% in the first quarter of FY 2024/25. Growth in agriculture, tourism, and electricity production contributed positively to the overall economy, the office stated.

However, the trade sector is expected to grow marginally by 0.5% due to limited increases in tradable goods. The construction sector on the other hand is expected to shrink by 0.3%, mainly due to the government's inability to make timely capital expenditures.

Construction entrepreneurs have raised concerns about delayed payments for completed projects and the sharp rise in the prices of cement and rods. They are preparing for protests, claiming that unresolved issues are hindering progress in the sector.

Finance Minister Paudel, however, stated that the government has addressed the payment issues, particularly liabilities carried over from the previous fiscal year. “We have cleared past dues this year. The problem has been solved, and there are no pending payments now,” he asserted.

Commitment to Stabilize Economy and Banking Sector

Minister Paudel reiterated the government’s commitment to ensuring the stability of both the economy and the banking sector. Responding to criticisms, he urged against negative commentary on the economy, stating, “We will not let the economy sink, nor will we let the banks fail. The economy is improving, and unfounded negativity does not help.”