Stock Market Growth Does Not Indicate Economic Improvement: Dr. Prakash Sharan Mahat

Dr. Prakash Sharan Mahat, a Nepali Congress MP and former Finance Minister, stated that the growth of the stock market does not signify an improvement in the overall economy. Speaking at a meeting of the Parliament's Finance Committee on Friday, he emphasized that one should not conclude that the economy is strong solely based on the stock market's growth.

State of the Stock Market: Dr. Mahat mentioned that the future trajectory of the stock market remains to be seen. He warned against hastily concluding that the economy has improved based on current rumors of stock market growth.

Sarcastic Remarks: He also made a sarcastic comment that some have interpreted the current stock market growth as a result of coordinated efforts between the Finance Minister and the Governor of the Nepal Rastra Bank.

Past Experience: Reflecting on his tenure as Finance Minister, Dr. Mahat recalled bringing the stock market index from 1,800 to 2,200 points but revealed that the then-Governor, Maha Prasad Adhikari, was not willing to introduce a flexible monetary policy.

Dr. Mahat expressed the view that stock market growth alone is insufficient to gauge the overall health of the economy. According to him, it is essential to consider broader economic indicators to assess economic improvement.