Prime Minister KP Sharma Oli, in his address to the Winter Session of the Federal Parliament on Friday, highlighted what he called key achievements of his six-and-a-half-month administration, asserting that his government has revitalized the economy. However, opposition parties strongly disagreed.
Oli claimed to have closely monitored challenges such as sluggish credit expansion, declining demand, and a slump in the real estate sector despite excess liquidity in the banking system and record-breaking remittance inflows since taking office. He justified the introduction of ordinances as necessary measures to boost private sector confidence, foster an investment-and-business-friendly environment, and ensure good governance.
“We successfully reformed laws that had been stalled for years through ordinances,” Oli said. “Without hesitation, I can say that these ordinances serve the people and were brought for their benefit.”
The government’s decision earlier this month to amend 29 laws through five ordinances—amid mounting pressure from the opposition to convene Parliament—has drawn criticism. While opposition parties denounce the move, the ruling coalition defends it, citing bureaucratic delays in the legislative process. Parliament now has 60 days to decide on these ordinances.
“Though there is much left to do, my government has managed to turn widespread despair into hope over the past six months,” Oli claimed.
Citing financial data, he asserted that year-on-year capital expenditure had increased by 15%, revenue collection by 13%, and total expenditure by 17.8% in the first half of the fiscal year.
“Credit expansion has risen by Rs 35 billion in six months compared to the same period last year,” he added, arguing that the economic situation is no longer as dire as it was six months ago.
To improve cash flow, Oli said his government has cleared Rs 30 billion in outstanding payments to construction entrepreneurs, settled dues for 1.5 million dairy farmers within 100 days of taking office, disbursed subsidies to 75,000 sugarcane farmers, and allocated Rs 800 million to the Insurance Authority to compensate farmers who insured their livestock and agricultural produce.
The New Business Age has not independently verified these claims.
“We have done everything possible to put the economy back on track,” said Oli, claiming private sector representatives have expressed their appreciation for the ordinances.
However, Swarnim Wagle, a lawmaker from the Rastriya Swatantra Party (RSP), the fourth-largest party in Parliament, questioned the need for ordinances related to bills already under discussion in House committees.
“The government is displaying signs of elected authoritarianism, ruling by law rather than upholding the rule of law,” Wagle argued.
According to Wagle, Nepal’s economy, stuck in a vicious cycle since the Covid pandemic, has yet to recover. He pointed to the misuse of additional loans and concessional credit provided after the pandemic, noting that much of this capital was funneled into real estate rather than sectors that created jobs and contributed to the economic growth.
“This excessive monetization of real estate has led us to a model where investment flows into land, people seek jobs abroad, and imports dominate our consumption,” Wagle said.
He also attributed the economy’s struggles to the import ban imposed from April to December 2022 taken for preventing rapid depletion of foreign exchange reserves, which, he argued, weakened aggregate demand and put further pressure on revenue collection.
Opposition lawmakers emphasized that economic recovery cannot be measured solely by statistics—it must be felt by the people.
