Finance Minister Calls for Coordinated Action to Curb Revenue Leakage

Nepal’s Finance Minister Rameshwar Prasad Khanal has emphasized the need for stronger coordination and collaboration among concerned agencies to make revenue leakage control more effective. Addressing a high-level meeting of the Central Revenue Leakage Control Committee at the Police Headquarters on Monday, he said unified efforts are essential to achieve lasting results.

Minister Khanal stated that while various systemic reforms have been introduced to control revenue leakage, their implementation must now be strengthened. He urged all state institutions to act responsibly within their respective mandates and contribute actively to revenue protection and growth.

Highlighting the broader impact of revenue leakage, he noted that weak enforcement not only affects government income but also undermines economic stability and public confidence. He stressed that preventing leakage is a shared responsibility and requires institutional commitment at all levels.

Speaking at the same program, Inspector General of Police Dan Bahadur Karki said that revenue leakage is not merely an economic issue but is directly linked to national security, good governance, and long-term prosperity. He stated that the Nepal Police has been playing an active role in controlling illegal trade and tax evasion in line with its institutional capacity.

IGP Karki added that stronger technological support, skilled human resources, legal reforms, and enhanced inter-agency coordination would help achieve sustainable and effective results in revenue leakage control. He emphasized the need for strategic cooperation among security agencies, regulatory bodies, and revenue offices.

During the meeting, Deputy Inspector General Bishwo Adhikari presented a detailed overview of Nepal Police’s role in controlling revenue leakage and smuggling. His presentation focused on operational challenges, recent enforcement activities, and future strategies.

Similarly, Joint Secretary Uttar Kumar Khatri from the Ministry of Finance delivered a presentation on revenue mobilization, collection mechanisms, and major sources of leakage. He highlighted the importance of data sharing and policy coordination to strengthen revenue administration.

The meeting also included virtual discussions with chiefs of all seven provincial police offices and heads of district police offices in Morang, Bara, Chitwan, Banke, and Kailali. They shared their experiences, challenges, and best practices in controlling smuggling and revenue leakage at the local level.

Participants agreed on the need to strengthen border surveillance, maximize the use of technology, improve intelligence-sharing mechanisms, and conduct joint operations. They also committed to enhancing coordination between central, provincial, and local authorities.

The government has identified revenue leakage control as a key pillar of fiscal discipline and good governance. Officials believe that the outcomes of this meeting will help reinforce institutional cooperation and contribute to more effective enforcement in the coming months.

Observers view the renewed focus on coordination as a timely step, particularly at a time when the government is under pressure to improve revenue performance and manage public finances more efficiently.