Bishnu Paudel is a current finance minister of Nepal. He was born in 20 November 1959 in Syangja. In this blog I am going to be concentrating in the impact of Nepali Stock Market by a name called Bishnu Paudel.
When Bishnu Paudel bacame the finance minister for the first back in 2015, The market was around 1,100 points and and he was able to peak the market upto 1,800 points. When he became finance minister for the second time, he was able to take NEPSE at around 3,200 points. The intresting fact is that when he took oath as finance minister, the market was around 1561.16. Now he has became finance minister for third time and the market has raised by 300 points within just a week.
Challenges He Faced
Talking about his first period of becoming finance minister, The country's economy was in very critical condition due to the massive earthquake. In addition of it the India's trade blockade was being a major obstacle for growing in economic sector. The finance minister was handed towards the very big responsibility of reconstructing all the national and important structures. Despite of such massive problem the market raised upto 1,800 points. From here the name Bishnu Paudel was becoming popular in Nepal.
Talking about his second period of becoming finance minister, The market was raised around 3,200 which is not less than a miracle as seeing the condition of the country. The country's economy was not that good. The country even headed towards the lockdown was hampering the country's economy a lot. It was a very difficult time for any country. Even the well developed country's had economic downturn. It was a very difficult time for every country. But the unusual growth of Nepali stock market was even surprising the investors. The country was facing through economic instability, The lockdown even pushed the economy backward, The big strike from the big parties were happening, The country was importing a lot of goods and exporting very less, there were too many big problems, despite of all of this problem, NEPSE had gone upto 3,200 and took a record of highest point till the date.
It has been just a week since he took responsibility for finance minister. And within a week, the market has already raised by 300 points which leads to a very interesting topic, "IS HE REALLY A BIG BULL?".
Is He Really A Big Bull ?
Before he became the finance minister, Yubaraj Khatiwada was the finance minister. Khatiwada was well educated and had a lot of knowledge about economy. In the other hand Paudel was not so educated and was not believed by many. Till the date, he has became the finance minister for third time and every time he became a finance minister there were a very big problem as mentioned above.
So the question was how the market was growing every time since he became the finance minister. The unusual growth of share market in lockdown period has became the key to discuss. Before he took the responsibility of finance minister, the market was around 1,500 points. The market doubling its points within very short period of time and without major economic development in the country is almost impossible to happen. The Bishnu Paudel had always responded that he insisted the central bank for the economic stability which leads to the upgrade of share market. But this might not only be the reason because such steps were even taken by his successor but the market hadnot been grown in such way. It is still a topic to discuss that how does stock market always goes upward whenever Paudel take the responsibility. After his second time, Janardan Sharma was appointed as the finance minister. But after Sharma's appointment the market started to flutter. The market seriously took a downtrack and was in very critical condition. the economic increment or decrement of the country wasnot changed that much, but the question is that ,Why the market falled drastically despite the fact that economic status of country wasn't changed by huge margin. Seeing this scenario we can even conclude that the stock market might not be always dependent on the countries economic growth or not. Market can be influenced a lot by the investors. The turnover was extremely high when Paudel became the finance minister which ultimately leads to growth of market. But the turnover started to decrease by a huge margin which ultimately lead to downfall of the stock market.
Paudel has now become finance minister for a third time, and within a week the market has already gained 300 points. It will be interesting to see how the market react after paudel being reappointed as finance minister.
