Bishnu Paudel, Vice Chair of the CPN-UML, serves as Nepal's Deputy Prime Minister and Finance Minister. Speaking with RSS, Paudel outlines the ministry's initiatives to reinvigorate the economy since he took office in July this year, along with insights into the party's internal dynamics. Excerpts:

What efforts have been made since you became Finance Minister to address economic challenges and revitalise the economy?

We have focused on assessing the nation's economic condition, identifying challenges, and finding solutions. Signs of economic recovery include a boost in private sector confidence and the creation of an investment-friendly environment. Upon assuming office, we prepared a 100-day action plan, of which over 90 percent has been implemented.

To further improve the economy, we established a high-level economic reform and suggestions commission comprising experts, industry leaders, and private sector representatives. Significant progress has been made in policy reforms, including regulations for insurance, securities for small and medium enterprises, customs duties, internal revenue mobilisation strategies, and internal debt management.

We also initiated mechanisms like refunding 10 percent of VAT paid by consumers for digital transactions directly into their bank accounts. Scanners have been installed at the Tatopani Customs Office, and we’ve launched an SMS/email notification system for import-export documentation updates. Citizen Savings Bonds and Foreign Employment Savings Bonds have been dematerialised.

Despite these efforts, concerns have been raised about delayed contractor payments, revenue collection issues, and low capital expenditure. How do you address these criticisms?

I took office under challenging circumstances, including payment obligations from previous fiscal years. The ministry has facilitated payments and is gradually clearing dues within legal parameters. Efforts are underway to clarify project classifications and improve resource allocation for multi-year projects.

We’ve seen improvements in foreign currency reserves, balance of payments, remittance inflows, banking liquidity, and interest rates. Capital market has become more dynamic, and a new chair has been appointed to the Securities Board of Nepal. Revenue collection increased by 17 percent in the first four months of this fiscal year compared to 3.2percent during the same period last year.

We’ve implemented measures to curb revenue leakage, seen positive trends in foreign aid mobilisation, and kept inflation under control. Capital expenditure rose by Rs 4 billion year-on-year in the last four months. Initiatives like the NRN Development Fund for diaspora investment and plans to revive or expand state-owned enterprises are also underway.

Despite your optimism, private sector stakeholders and citizens remain concerned. What is your response?

We acknowledge the economic challenges and don’t claim to have resolved everything. The government is committed to addressing issues and revitalising the economy. When I took charge, we faced numerous problems, including unmanageable projects and unrealistic revenue targets inherited from previous administrations.

Still, we’ve made notable progress in redirecting the economy toward positive growth. Priorities include channeling affordable and abundant bank liquidity into production, productivity, and employment generation while addressing private sector concerns.

Our focus remains on making the economy dynamic, enhancing revenue mobilisation, and accelerating capital expenditure.

Prime Minister KP Sharma Oli recently completed an official visit to China. How do you view this visit?

As the head of an elected government of a free and sovereign nation, the honorable Prime Minister KP Sharma Oli’s visit to China was extremely successful and historic. This visit has elevated the relations between Nepal and China to new heights. During the visit, emphasis was placed on the implementation of past agreements, and new, historically significant agreements were also concluded. These agreements hold special and long-term importance for Nepal’s economic development, particularly in the area of infrastructure development.

Some Congress’ leaders have made negative comments, particularly about the Framework for Belt and Road Initiative (BRI) Cooperation agreement. Doesn’t this raise questions about the success of the visit?

No, this should not be understood in that way. I understand that the official stance of the Nepali Congress is represented by the party’s President Sher Bahadur Deuba, who has described the visit as highly successful. Prior to the signing of the Framework for Belt and Road Initiative Cooperation Agreement, both parties had serious discussions at the top leadership level, and there was an agreement on what should be done and what should not be done. The signing of the BRI agreement was in accordance with the consensus between the Nepali Congress and the CPN (UML). If anyone thinks they can create discord between the two major parties by raising this issue, that is just an illusion.

There are concerns about rifts between Congress and UML. How long will the alliance last?

Since drafting the constitution in 2015, the public's aspiration has been prosperity with social justice. Political instability, however, has hindered progress. The Congress-UML coalition was formed to ensure stability and development under the current parliamentary framework.

This alliance is based on shared objectives, not fragile agreements: ensuring political stability, safeguarding the constitution, combating extremism, and fostering development with social justice. While there are attempts to create divisions between Congress and UML, we are committed to maintaining the coalition until the next general elections.

Is there no issue between Congress and UML?

No significant issues have arisen so far. A joint mechanism involving the Prime Minister, Congress President, and senior leaders from both parties facilitates decision-making. A subcommittee with leaders from both parties deliberates on important matters. This structure ensures effective communication and avoids misunderstandings, allowing us to focus on stability and development.

UML is also said to be dealing with internal rifts. What is your take?

There are no disputes over UML's policies or leadership. The party is united in its commitment to multiparty democracy and the transformative goals set during the 10th National Convention. Party Chair KP Sharma Oli enjoys widespread trust and respect within UML.

While situational disagreements may arise, they are promptly addressed to maintain unity. The upcoming 11th National Convention will proceed with consensus on both policies and leadership.

Does this mean KP Sharma Oli will remain leader after the 11th Convention?

The question is not about confidence but about capability. KP Sharma Oli has effectively led both UML and the nation. His unmatched experience and vision make him the most suitable leader. He enjoys the unwavering trust of party members and the broader public. I am confident he will be re-elected unanimously at the convention.