Nepal, Feb. 1 -- The government has set a target to increase the financial sector's contribution to the national economy by 0.85 percentage points to 7.5 percent of the country's gross domestic product (GDP) over the next five years, at a time when many players in the sector are struggling to expand their businesses.

According to the Ministry of Finance (MoF), the financial sector currently contributes 6.65 percent to GDP. Unveiling the Second Financial Sector Development Strategy (2025/26-2029/30), the MoF said the target will be pursued by steering the sector toward a sustainable, inclusive and progressive path to support overall economic prosperity.

The strategy aims to develop a capable and efficient financial sector to promote sust...