The federal budget for FY 2021/22 envisioned an economic growth rate of 6.5%, which seems pretty farfetched considering the current situation.
The trade and agriculture sectors experienced demand shocks as demand from the accommodation and tourism sectors fell.
The budget of Province 1 contracted by the highest percentage while the biggest budget expansion was that of Lumbini Province.
The looming question is ‘How will the government manage its expenses to undertake and complete its plans and policies laid across all the sectors?’
There are multiple institutional bottlenecks that impede Nepal’s capacity to effectively mobilize savings.
In the context of Nepal, book-building may encourage companies of the real sector, namely manufacturing and tech companies to go public as they are no longer obliged to issue an IPO at a fixed price.