Nepal’s Power Sector in 2030
The Nepali power sector has been beset by challenges since the early 1990s; initially with the unfinished reform begun by the Electricity Act, 1992 which created an ineffective hydro-project licensing regime. Beginning 1996, the demand of electricity started to increase in an unprecedented trend as people migrated into Kathmandu. Political instability, slow decision-making and a breakdown of corporate governance slumped investment, resulting in up to 18 hours daily power outages. In response to power shortages, public and private sectors have responded by investing in generation and transmission projects. But instead of just responding to crises, Nepal has the potential to leapfrog into an electric economy by 2030 if a few basic sector reforms are initiated and programs already on paper are implemented. Read more
Nepal’s Agricultural Transformation by 2030 and Wishful Thinking
A very low growth rate in the agricultural GDP and a declining share of agricultural output depict slow transformation in the agriculture sector in Nepal. Saturation of arable and productive land, low growth in yield, low level of technology and input uses, poor investment and capital formation, increased labor outmigration, inadequate policy support and climate change have all attributed to this situation; turning Nepal into a net food importing country. Read more
Nepal Budget 2016-17: Politics Over Policy Prudence?
The annual budget tabled for FY 2016-17 does little to impress or inspire. Instead of embracing and paving the way for market oriented reforms, the proposed budget has instead opted for distributive economics significantly hiking up expenditure targets against a backdrop of historically low spending capacity and worse still, without prudent actionable agenda on improving capital spending. Read more
Salvaging the Economy
The recently released Economic Survey - FY 2015-16 paints a worrisome picture of the economy. For the second time in the last 15 years, Nepal’s GDP growth rate has slipped below one percent, just narrowly escaping contraction. Read more
Five Things You Need to Know about Nepal's Economic Survey 2015/16
Learning to read the Nepal Economic Survey Read more
HCS 2016: Closing Plenary - Drivers of the New Himalayan Economy
The closing plenary provided an opportunity to summarize the discussions as well as determine key actionable points and out comes from the summit that can be taken up by various institutions. Read more