Janardhan Sharma became the most unsuccessful finance minister in history of Nepal, How ?

Janardhan Sharma became the most unsuccessful finance minister in history of Nepal, How ?

Kathmandu. On June 2078, when Janardhan Sharma was taking the oath of Finance Minister for the first time, the country was getting rid of the covid crisis. The situation that the country was facing due to the infection of the delta virus had already ended in June. Due to the widespread availability of vaccines and greater participation of citizens in the vaccination campaign, the economic activities that had been stopped for 15 months opened at once. It was expected that the country's economy would rise rapidly. But the progress of Janardhan, who has been holding the state treasury for 17 months, has been disappointing.

When Janardhan became Finance Minister, the country's treasury had 11 billion 750 million dollars in foreign currency, enough to meet the import of about 10 and a half months. But by the time he left, it had dropped to $9.63 billion. Foreign currency could not be increased even by bringing many loans and rescue funds from foreign donors.

Last Baisakh, located in Shodhantar, reached the worst condition in history. At that time, Nepal's balance of payments went to a deficit of 288 billion 500 million. It gradually improved after the import ban and has returned to Nepal's favor since last October. When Janardan took over the ministry, the savings of only 1.5 billion have been saved by 20 billion in the middle of October.

During Janardan's time, the trade deficit and current account deficit were also the highest in history. Last fiscal year, current account deficit reached 12.8 percent of GDP. The trade deficit as a proportion of the economy also became the highest in history last year. Last fiscal year, the trade deficit reached 35.5 percent of the gross domestic product. Both these figures are the highest since 2031, when our government started keeping data. Earlier in 2053, the current account deficit exceeded 8.5 percent of the economy. But at the time of leaving, this figure has also improved. The current account deficit, which had reached 3 trillion 33 billion when the Sharma Ministry was present, was reduced to around 35 billion last October. Import bans and interest rate hikes have contributed greatly to bringing the current account back into the fold.

Even the stock market, which has many interests and is called the mirror of the economy, did not support Janardhan. NEPSE, which reached 2883 points at the end of June 2078, fell to 1911 points at the end of last October. When Janardhan left the government, the NEPSE index fell to 1867 points. There has also been a massive decline in the size of the stock market. 16 months ago, the total value of shares of 219 companies exceeded 40 trillion 11 billion. But by October, the number of companies added to NEPSE reached 245, but the market capitalization dropped to 27 trillion 49 billion.

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