Finance Minister Urges Loose Policy for Stock Market to Boost Investor Confidence

Finance Minister Dr. Prakash Sharan Mahat has called on the Rastra Bank to adopt a more lenient approach to address the concerns of investors in the stock market. He made this request while responding to questions posed by Members of Parliament in the lower house of the Federal Parliament.

MP Prem Suwal asked the Finance Minister, "Should the government be held responsible for the fact that ordinary investors have resorted to extreme measures, such as suicide, due to indiscriminate investments in share trading and the government's policies?"

In response, Finance Minister Dr. Mahat emphasized that certain restrictive measures in various sectors are contributing to market challenges, and the government is committed to resolving such issues. He also noted that regulations imposed by the National Bank have disrupted the market, and discussions are underway to assess the impact of these measures. He stated, "We want to see the stock market stabilize, ensuring that investors' investments remain secure. The government is dedicated to enhancing transparency and implementing policy, procedural, and systemic reforms within the stock market."

Drawing on examples of the gradual easing of restrictions by the Rastra Bank, the Finance Minister expressed confidence that policies would be formulated in the best interests of investors, and the economy is on a positive trajectory, with the stock market showing signs of growth. He added, "The economy is rebounding, and the NEPSE index, which experienced significant declines, will recover."

Dr. Mahat acknowledged that some investors have seen a decrease in the value of their shares but reassured them, saying, "NEPSE will rebound, and investors will regain their investments with positive returns."

He also highlighted positive developments in various sectors of the economy, stating, "Positive signs are emerging across the entire economy, including the tourism, hotel, restaurant, and service sectors. The budget is being effectively utilized, and capital inflows have increased."

Dr. Mahat encouraged all individuals, regardless of their expertise or occupation, to consider investing in the stock market according to their financial status.

Furthermore, the Finance Minister urged parliamentarians to maintain a positive outlook despite substantial improvements in the economy. He stressed the importance of constructive debates in the country, saying, "We should avoid extreme pessimism, such as claiming that the economy has collapsed or there is no point in living or investing here. Negativity breeds negative results. Let's not sow confusion; let's work together to clear it."

Dr. Mahat cited Nepal's resilience in the face of challenges, including the COVID-19 pandemic and earthquakes, and noted that the country has overcome external economic sector difficulties. He highlighted the positive indicators, such as abundant remittances, increased capital inflow, growing foreign exchange reserves, rising tourism, and improved revenue collection. He encouraged a shift towards positive thinking and debate, starting within the parliament.

Throughout his responses, the Finance Minister reiterated that the economy has begun to recover and improve.