Kathmandu, Sept. 4: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that the government will expand investment in the project that can give good return.

“The government is in favour of achieving the goal of economic growth through effective management by expanding investment in projects that can give reasonable return to the economy based on cost and benefit analysis,” he said at a discussion with the Resident Representative of the International Monetary Fund for Nepal Teresa Daban Sanchez at the Ministry of Finance on Tuesday.

Deputy Prime Minister Paudel said that the government would take loans cautiously and invest the loans taken in projects that will increase production and productivity as well as give good returns.

He said that the government would commit to the policy reforms up to the review of the fourth term of the Extended Credit Facility (ECF) for Nepal and implement it and cooperate with the International Monetary Fund for the fifth review to be held in November.

Sanchez expressed her view that Nepal has very good potential in the field of hydroelectricity and tourism, and capital spending in areas that yield returns can increase economic growth and the size of the economy.

The government has set a target of achieving 6 per cent economic growth in the budget of the current fiscal year.