KATHMANDU – Following a recent decline in the stock market, which had previously surged past the 3000 mark, Finance Minister Bishnu Prasad Paudel has expressed agitation. Known for his supportive stance towards the stock market, Paudel is concerned about the unexplained drop in the Nepal Stock Exchange (NEPSE) index.

Paudel, who was the Finance Minister when the stock market reached record highs, was in charge when the NEPSE index hit 1881 points and later 3198 points during the COVID-19 pandemic. His tenure is associated with the stock market’s upward trajectory, leading to his reputation as a stock market-friendly minister.

When Paudel assumed the Ministry of Finance for the fifth time, the stock market was on a positive trend. Following his appointment on June 31st, the market experienced significant growth, with daily turnover increasing from 2 to 3 billion rupees to 30 billion rupees by the end of the month.

Despite the overall economy showing signs of recovery, the stock market recently fell from 3000 points to 1800 points. This decline has been ongoing for 18 days, with sporadic increases that have not sustained upward momentum. The drop is perplexing given that bank interest rates are at their lowest in 30 months, and investable liquidity in banks is around 6 trillion rupees.

In response to the market’s unexplained downturn, Paudel visited the NEPSE office to seek an explanation. He questioned why the stock market, which had previously reached 3000 points and saw transaction volumes of 30 billion rupees, had now declined and why trading volumes had dropped to 6 billion rupees. Paudel stated that he would continue to seek answers to these questions.

Although the government has positioned itself as capital market-friendly and committed to the sector’s sustainable development, the recent market decline has irritated the Finance Minister. The current administration has highlighted the growth of the capital market as a success, with the Prime Minister noting the market’s recovery during a vote of confidence.

NEPSE Chairman Shobhakant Paudel informed the Finance Minister that there appears to be no clear reason for the market’s decline. He suggested that increased monitoring by the Ministry of Finance is necessary. “The Ministry of Finance should enhance its monitoring of NEPSE,” he said.

Stock investor Tara Prasad Fullel praised Finance Minister Paudel for his market-friendly approach and expressed confidence that Paudel would continue to support the stock market as a reflection of Nepal’s economy. Another investor, Chhotelal Rauniar, echoed this sentiment, noting that Paudel’s policies and approach do not engage in anti-market activities, which contributes to his positive reputation among investors.