Nepal and Bangladesh have an opportunity to turn years of dialogue into a practical economic partnership. As Nepal faces the challenge of disaster recovery and both countries navigate changing trade preferences, the way forward lies in connecting reconstruction finance, private investment, digital payment systems, and shared data to build resilient infrastructure and strengthen cross-border trade.
Technological developments and commercialization are key factors for long-term investment in the industry. The government can realize the immense potential to address the gap in technical skill development and commercialization to increase investment in agriculture.
To curve the recessionary trend in Nepal, solutions should stem at the government level. The path to recovery is possible if the government focuses on strengthening fiscal policies and applying fiscal stimulus wherein the Nepal Rastra Bank (NRB) mobilizes monetary policies and encourages businesses, and manufacturers, – strengthening Nepal’s exports in international markets.
The government has recognized the potential that the diaspora and remittance hold, and has attempted to mobilize it through investments.
Along with improving financial status, financial inclusion has a direct impact on access to nutritional food, clean water, shelter, healthcare, education, and other basic needs.
Paired with an already low spending capital expenditure budget, the shortage of government revenue required to fund development projects has delayed several important projects, with the contractors not being paid on time which will lead to delays in project completion.