6th May 2025, Kathmandu
Dr. Yuba Raj Khatiwada, the Economic and Development Advisor to the Prime Minister, has said Nepal’s economy is regaining momentum. He believes the country could graduate from a developing to a middle-income nation by next year if current trends continue.
Dr. Khatiwada’s Nepal Economy Forecast
He made these remarks at a pre-budget policy discussion hosted by IBN Media & Research Pvt. Ltd. The event also marked the 32nd year of the weekly television show Artha Ko Artha on Nepal Television.
Economic Indicators Show Positive Signs
Dr. Khatiwada shared optimism about the nation’s economic recovery. He said most key indicators are improving. The country now needs to sustain this pace to achieve its goals.
He noted that to maintain growth, the government should consider borrowing to boost the economy. Even if internal loans are required, he stressed the need to keep the economy active.
Focus on Growth Through Investment
The former finance minister emphasized that more than 5% economic growth will require internal borrowing. For a 6–7% growth rate, Nepal must increase its public debt size.
“When I was the finance minister, I had defined sectors for internal loans,” he said. “Now, we must focus on project-based borrowing rather than just setting sector limits.”
ICT, Startups, and Youth Employment
Dr. Khatiwada also praised the government’s focus on information and communication technology. He said the new policy includes plans to promote youth-focused startups.
The government is working on a clear business model and ecosystem targeting Generation Z. These startup programs aim to encourage entrepreneurship and generate local jobs.
This approach will increase income opportunities for young people, according to Dr. Khatiwada.
Cutting Wasteful Expenditure
He also pointed out inefficiencies in government spending. In particular, he said software procurement costs more than foreign trips.
“There are still problems in public procurement,” he said. “We plan to revise the Public Procurement Act and propose changes in the next parliamentary session.”
Delays in Policy Implementation
Questions were raised about delays in implementing commission reports. Dr. Khatiwada responded that some reports were incomplete or required further study.
He explained that the government will apply recommendations gradually. Both the Economic Reform Commission and the Public Expenditure Review Commission have provided useful inputs.
The goal is to execute them in phases and improve results step by step.
All Sectors Must Act Responsibly
Dr. Khatiwada called for responsibility from every sector. He said collective effort is essential for economic transformation.
“We must all move forward together to strengthen the economy,” he added.
Budget Recommendations by Experts
The event also featured a paper presentation by Tribhuvan University Professor Dr. Resham Thapa. He outlined his suggestions for the 2082/83 fiscal year.
Dr. Thapa stressed that the budget must revive all sectors of the economy. He also urged the government to appoint a new governor for the Nepal Rastra Bank without further delay.
According to his paper, the economy appears weak on the surface. However, the data shows signs of gradual improvement.
Economic Program Praised for Contributions
FNCCI Director General Gokarna Awasthi praised Artha Ko Artha for its long-standing service. He said the program has closely followed Nepal’s economic progress for over three decades.
He also acknowledged its influence in policy discussions and public awareness.
Experts Comment on Budget Strategy
Several experts joined the policy discussion. Economist Dr. Keshav Acharya, cyber security expert Dr. Shaligram Parajuli, and professor Dr. Bhojraj Ghimire offered their views.
They commented on the government’s current plans and suggested areas for improvement. They also discussed budget implementation, governance challenges, and reforms.
Chiranjivi Adhikari, the founding chair of the Cyber Security Research Center, also shared his insights.
Organizers Expect Stronger Policy Impact
Program Chair and IBN Media Managing Director Hridaya Raj Gautam said such events help the government in budget and policy planning.
He committed to making Artha Ko Artha more impactful and relevant in the future.
As part of the event, the 32nd edition of Artha Ko Artha’s annual publication was also launched. It highlights the show’s ongoing role in economic reporting and analysis.
For more: Dr. Khatiwada’s Nepal Economy Forecast