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Reuters | | Posted by Yagya Sharma
nepalThe country’s Prime Minister Pushpa Kamal Dahal on Friday named centrist politician and economic expert Prakash Sharan Mahat as finance minister in response to falling tax revenues and high rates, a presidential statement said. interest rate issue.
Prakash Sharan, 64, is considered an economic expert. (AIR/file)
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Mahat previously served in the foreign and energy ministries and is a member of the centrist Nepal Congress, the largest party in Nepal’s nine-party coalition.
He replaced Bishnu Paudel of the communist Unified Marxist-Leninist (UML) party, which quit the government last month over disagreements with the prime minister.
The 64-year-old is considered an economic expert.
Nepal boosted its foreign exchange reserves after the government restricted imports of 10 “non-essential” goods in April last year.
However, its manufacturing sector has been hampered by power shortages and underinvestment, while poor government revenue collection has held back growth in the $40 billion economy.
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Gross domestic product is expected to slow from last year’s 5.8 percent growth rate in the year to mid-July, officials told Reuters.
“The biggest challenge for the finance minister is to create a favorable investment climate and win the trust of all stakeholders, including ordinary people,” former central bank governor Deependra Bahadur Kshetri told Reuters.
In addition, businesses are protesting high lending rates, which are now around 13 percent, compared with 12 percent a year ago, demanding a reduction to the single digits.
Annual inflation fell to 7.88% in mid-February, but remained above the central bank’s 7% target.
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