Nepal’s sovereign credit rating highlights a favorable investment environment, said Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, emphasizing the government's commitment to fostering economic stability and growth.

Speaking at a meeting with development partners on Monday, Minister Paudel attributed the positive credit rating to the country’s political stability under a coalition government involving the Nepali Congress and the CPN (UML). He noted that this stability has bolstered private sector confidence and is expected to attract increased foreign investment.

Minister Paudel outlined several factors contributing to Nepal’s economic progress, including improvements in the current account, balance of payments, growth in electricity exports, rising remittances, and an uptick in tourist arrivals. He stressed the need to diversify and expand exports to strengthen the external sector in the long run.

While acknowledging challenges such as declining capital expenditure and increasing social security commitments, Minister Paudel assured that the government is prioritizing infrastructure development and improving the quality of public projects. He highlighted ongoing efforts to draft new policies for assistance mobilization and public finance management, aimed at addressing these issues effectively.

The minister also emphasized the importance of external support and expressed the government’s readiness to collaborate with development partners on critical issues like climate adaptation and building a green economy. He reaffirmed the government’s commitment to executing a sustainable revenue mobilization strategy and addressing public finance imbalances.

Representatives of the development partners, including those from the World Bank, the Asian Development Bank, and the United Nations Development Programme, expressed readiness to support Nepal’s economic initiatives. They praised the government for establishing the High-level Economic Sector Reform Recommendation Commission and noted that Nepal’s credit rating has enhanced its appeal for foreign direct investment.

This meeting marked a step forward in strengthening partnerships to achieve long-term and effective development outcomes.