Despite a lot of foreign currency being spent on imports, Nepal hasn’t seen a significant inflow of foreign currency.
Nepal lacks a market or exchange where foreign exchange derivatives can be traded freely for the purpose of hedging or earning short-term gains.
The contribution of remittances was considered a major positive in the otherwise sluggish economy of the low-income countries.
The need for a GRID model is ever-growing, especially for the recovery of the private sector.
In Nepal, SMEs contribute about 22% to the country’s GDP, creating over 1.7 million job opportunities.
It is crucial for Nepal to diversify its exports – commodities as well as destinations.